“Saudi Arabia, Russia and others- the OPEC plus producers decided to cut the oil production.
When we look at the International Energy Agency’s analysis and the analysis of almost every serious institution looking at the oil markets. The second half of this year markets would be all very tight,” Birol said.
The IEA executive director stated that India imports energy and relies on imported oil for the majority of its consumption.
Therefore, the decision to cut oil production by major producers will put the burden directly on the Indian economy and its consumers.
Birol said in the coming years there would be downward pressure on oil prices and supply security concerns. More countries are now producing, and exporting their own natural gas which will lead to a float of liquified natural gas (LNG) in the market.
India has become an important player in the global oil market since the beginning of the Russia-Ukraine war.
In which the European Union shunning Russian products, including oil.
India, on the other hand, increased its crude oil imports from Russia at discounted rates.
And enabled its backdoor entry to European nations in the form of refined oil, such as diesel and jet fuel.
The oil import jumped by a whopping 33 times more than a year earlier, according to a report released in January.
IEA top official said it is a legitimate step and India is following the international rules and regulation in terms of trade and financing rule.
“India is doing this in a transparent way.
And India is profiting having the importing of crude at a lower discounted price than the others.
He added that this is definitely a legitimate step.