India And China Enter Discussions To Form Oil Importers’ Club To Tackle Pricing Pressure From OPEC

Two of the world’s leading oil importers, India and China, are in talks to come up with a strategic oil buyers club to negotiate better prices with oil exporting countries and also to increase crude imports from the US in the future, reports OilPrice.Com.

As the oil producers’ cartel, OPEC has again driven crude prices higher, Delhi and Beijing are willing to collaborate and leverage from a position of strength to negotiate the prices down to a sustainable level. Brent Crude prices hovered around $80 a barrel last month, the highest since late 2014. Gasoline and diesel prices in India were at a five year high amidst a weakening rupee against the US dollar.

With the spike in crude prices affecting the economy, Indian Petroleum Minister Dharmendra Pradhan, over conversations with the representatives of the OPEC states, is reiterating the need to have ‘responsible prices’.

Pradhan plans to visit Vienna next week to take part in the 7th OPEC International Seminar to further discuss the oil market and pricing issues.