High natural gas prices in India made British Petroleum (BP) curtail investment in the country, ET Now reported citing company CEO Bob Dudley. However, India is an important market for the oil major and the firm is in talks with Reliance Industries Limited (RIL) to venture into downstream business, Bob Dudley told ET Now on the sidelines of an event. On rising crude prices worldwide, BP CEO said the oil prices are very high particularly in India and Turkey. He sees oil prices around $60-65/bbl over time, but not immediately.
Talking about fuel price control, he said it’s not a good option for oil sector. It may affect the payment of dividend by the Indian oil marketing companies (OMCs), he also said. Bob Dudley expects oil prices to change over the next 45 days due to geopolitical reasons. The oil can be $60 to $90 by year-end which cannot be told for sure, he said.
Meanwhile, earlier today, Chief executive officers (CEOs) and experts from the oil and gas sector, from both India and abroad, met Modi. Interacting with the global leaders of the energy sector, Modi said said the oil market is producer driven and the oil producing nations determine the prices. EVen though the oil production is at an adequate level, the oil prices have jacked up due to unique features of marketing in the oil sector, he added. Modi also talked about coming up with a strong partnership between the producers and consumers, in the oil market, as it exists in other markets as it will help stabilise the global economy which is on path of recovery.
Speaking on the occasion, India’s Oil Minister, Dharmendra Pradhan said that the country cannot rely on a single energy source in times of energy volatility. India is facing economic headwinds due to high oil prices, he added.