In a context of high volatility on international markets, India, the world’s third largest consumer of oil, on Friday proposed a stable oil market that offers reasonable prices to producers and affordable prices to consumers. Speaking at the special meeting of energy ministers from G20 countries, Minister of Petroleum Dharmendra Pradhan said that India will remain the engine of growth in global demand for energy. “With regard to the current fluctuations in the energy market, the minister said that India has always argued for a stable oil market, which is reasonable for producers and affordable for consumers,” said a statement.
G20 energy ministers focused on ways to ensure stability in energy markets, which are affected by reduced demand resulting from the COVID-19 pandemic and problems related to current surplus production.
Participating in the meeting via video link, Pradhan highlighted the decision to provide 80.3 million poor families with free LPG bottles as part of a $ 23 billion relief plan to cope with the fallout from COVID- 19. He stressed that India has been and will continue to be the world center for energy demand.
The minister also highlighted the government’s efforts to fill strategic reserves by using a low oil price regime.
Appreciating the collective efforts of OPEC and OPEC-plus countries to balance supply factors that are imperative for long-term sustainability, he however called for oil prices to be targeted at affordable levels to allow a recovery in demand driven by consumption.
The G20 energy ministers’ meeting will adopt a joint declaration which, among other things, proposes to create a task force to advise the G20 energy ministers on the next steps, and has decided to remain engaged in the coming days . The group of major G20 world economies convened an extraordinary meeting of energy ministers to discuss OPEC-led plans for a global crude oil production reduction agreement to raise prices that have halved in the past month.
The meeting was held via a webinar to “foster global dialogue and cooperation to ensure stable energy markets and enable a stronger global economy,” said the G20 in a statement. This is the first time that the G20 has met specifically to deal with energy issues, which shows the depth of concern over the oil accident. He intervened in the middle of OPEC, Russia and nine other allies negotiating a marathon to finalize an agreement to reduce global production by 10 million barrels a day in order to boost prices plunged by the coronavirus pandemic.
The alliance, known as OPEC +, also hopes to convince other key oil producers, including the United States, to join the deal. Saudi Arabia, the largest OPEC producer and de facto leader, is taking over the rotating presidency of the G20 this year.
Global demand for oil has fallen by more than a quarter, as countries around the world have instituted blockages that have immobilized flights, closed factories and removed most vehicles from the road, in an effort to fight coronavirus .
This has led to a collapse in prices which threatens to cripple the global industry. Brent crude hit a 20-year low of $ 20 last month, before rising to more than $ 30 in hopes that producers will reach an agreement. US President Donald Trump has urged Saudi Arabia and Russia to withdraw from a price war that started last month after fighting over how to meet declining demand.
Saudi Arabia and Russia, which had previously collaborated through the OPEC + group, want other countries, including the United States – the world’s largest oil producer – to participate in the cuts as well. In preparation for the meeting, the executive director of the International Energy Agency (IEA), Fatih Birol, said the global supply glut was at least 25 million barrels a day.
The G20 group includes large oil producers such as the United States, Canada, Saudi Arabia, Russia and Brazil as well as large consumers such as China, India, Japan and Korea. South who depend on imports and see little incentive to raise prices as the recession approaches.