The International Energy Agency (IEA) called OPEC+’s move to limit oil production “risky for the global economy”, saying it could exacerbate already high prices, resulting in countries such as India Import cost may be higher.
Responding to an inquiry on the possible impact of Saudi Arabia’s reduction in oil production on countries like India, Fatih Birol, executive director of the International Energy Agency (IEA), replied, “Such a move could increase India’s oil import bill.” , a strain on the Indian economy and consumers. According to Biol, global oil markets are already set to tighten in the second half of 2023, with significant supply shortages likely to emerge.
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Speaking about the impact of rising prices in India, he said that “higher oil prices will not only contribute to inflationary pressures on other commodities, but will also result in a higher import bill for countries like India, which are unable to meet their needs.” rely on foreign supplies to make ends meet.” needed.
According to Birol, India’s economy is healthy and will continue to be strong.
India is the world’s third largest consumer and importer of oil. It gets 85 percent of its oil requirement from other countries. During the first eleven months of its fiscal year 2022-2023, it spent USD 118 billion on oil imports.
Fatih Birol acknowledged that India is an important country importing crude oil and re-exporting refined oil to Europe. The IEA chief said that India was working transparently and in accordance with international rules and regulations. India is one of the countries that took advantage of the opportunity to buy subsidized oil to reduce its import cost.
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