BackIndia raises concerns over high oil prices, urges for more production by Opec+
Adipec summit: India raises concerns over rising crude oil prices. India needs more production to meet energy needs and finds current prices difficult to pass. Oil company heads in Abu Dhabi highlight dependence on fossil fuels and the rise in prices due to drop in investments.
PremiumAhead of the biggest energy conference in the Middle East--Adipec summit in Abu Dhabi--India has raised concerns regarding the skyrocketing crude oil prices that are heading toward $100 a barrel.
India has “a constant dialogue with all producing countries where we keep raising this point" that crude prices are too high, Pankaj Jain, secretary at the Ministry of Petroleum and Natural Gas, said in an interview.
His country isn’t comfortable with current oil prices, which are near $93 a barrel in London, and “we need more production now," Jain said. While India acknowledges OPEC’s right to decide how much it produces, the group’s cuts have increased prices.
“High prices lead to demand destruction," Jain said. “Our viewpoint is we are finding these prices difficult to pass, difficult to continue to meet our energy needs."
Meanwhile, the president of the upcoming COP28 climate talks told an Abu Dhabi oil conference that the fossil fuel industry would play an essential role in addressing the climate crisis.
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"This industry can change the global debate... It is time to silence the skeptics by applying scale, capital, and technology to deliver outcomes," said Sultan Al Jaber, the president-designate of the COP28 talks, who is also the head of UAE state-owned oil firm ADNOC.
However, the oil company heads in Abu Dhabi underlined the dependence of the economy on fossil fuels and the rise in prices which, according to them, was induced by a drop in investments in the sector over the past few years.
TotalEnergies will pursue its projects in oil and gas, with a predicted growth rate of two to three percent per year, while investing $40 billion in energy transition and decarbonisation projects, said its CEO Patrick Pouyanne.
The CEO of Shell, Wael Sawan, said there would be a package of $10 billion to $15 billion over the next three years for low-carbon solutions.
OIL TUMBLES
Oil fell for a fourth straight day on Tuesday as macroeconomic concerns overshadowed physical market tightness to cloud the demand outlook.
West Texas Intermediate traded near $88 a barrel after declining by 2.2% in the previous session.
Oil has now dropped almost 6% since last Wednesday’s close on fears over the global economy.
Citigroup Inc forecasts Brent crude will fall to the low $70s per barrel next year as the market swings back to a surplus. Demand looks constrained and there’s more oil coming into the market from non-OPEC suppliers, it said in a note.
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