PM Modi played a big role in convincing OPEC on oil prices; here’s how

By: | Updated: December 8, 2018 2:27 PM

In October, Modi, in a meeting with Khalid A Al-Falih, reiterated that high crude prices were hurting the global economy and also sought a review of payment terms to provide a temporary relief to the local currency.

Prime Minister Narendra Modi has played a big role in convincing Organisation of the Petroleum Exporting Countries (OPEC) for responsible oil pricing, alongside US President Donald Trump.Prime Minister Narendra Modi has played a big role in convincing Organisation of the Petroleum Exporting Countries (OPEC) for responsible oil pricing, alongside US President Donald Trump.

Prime Minister Narendra Modi has played a big role in convincing Organisation of the Petroleum Exporting Countries (OPEC) for responsible oil pricing, alongside US President Donald Trump. And none other than Saudi oil minister Khalid Al Falih is vouching for it.

It is not an unknown fact that Modi has been vocal about oil prices at several energy-related international meetings and often asked Saudi Arabia and OPEC for responsible pricing as India is the world’s third-largest oil consumer.

“We take the views of Prime Minister Narendra Modi seriously who (like US President Donald Trump) is equally vocal about the issue,” Khalid Al Falih said at a meeting of OPEC.

We just met him in Buenos Aires (during G20 summit) and privately he made those points very very strongly that he does care for Indian consumers and is very serious about it. I have also seen him at three times at various energy events in India where he was very vocal,” he added.

In April this year, Modi said that artificially distorting oil prices was self-defeating at  16th International Energy Forum (IEF), in which ministers from OPEC, including Saudi Arabia, Iran and Qatar were present.

Later in October, Modi, in a meeting with Khalid A Al-Falih, once again, reiterated that high crude prices were hurting the global economy and also sought a review of payment terms to provide a temporary relief to the local currency.

Not only Modi but oil minister Dharmendra Pradhan has played a crucial role in pushing India’s arguments for lower oil prices. At the annual institutional dialogue between the world’s third-largest oil importer and the OPEC, Dharmendra Pradhan said that the spike in rates was far detached from market fundamentals and was hurting importing nations.

Oil prices have been on a roller-coaster ride since last year after remaining below $60 a barrel. Multiple factors including diplomatic push to keep oil prices low have been at play whenever oil prices surged beyond $75 a barrel.

Recently, oil jumped to as high as $85 barrel but soon slumped to $60 a barrel due to increase in supply and output jump in US oil production. However, once again, OPEC is planning supply cut to push oil prices up.

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