India wants stability in oil price at current levels

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New Delhi: India, a major Asian oil importer, wants global crude oil prices to stabilise at current levels and said volatility in prices was bad for both consumers and producers.

Oil Secretary R.S. Pandey did not comment if India agreed with Saudi Arabia's view that $75 a barrel was a fair price, and said prices would be determined only by market forces.

"As a major consuming nation we would like prices to remain stable and around this level," he said.

Saudi Arabia's King Abdullah and oil minister Ali al-Naimi said that the world's top exporter sees $75 per barrel as a fair price for oil.

OPEC, many of whose members are concerned at the sharp fall in crude oil prices , deferred over the weekend a decision on production cuts until the suppliers' cartel meets again on Dec. 17.

Pandey said 2008 had been a difficult year with crude oil prices fluctuating between $50-$150 a barrel.

"What is more important is there has to be stability in prices. Volatility of the kind witnessed this year has been very bad ... This type of volatility is extremely difficult for producing companies as well as consuming companies," he said.

Oil has fallen nearly $100 from a record high of $147.27 hit in mid-July as worries about the economic slowdown in the United States and Japan stoked concerns about global fuel demand.