Page 6 - AsiaElec Week 06 2021

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India warns of global economic

fallout from soaring oil prices

INDIA THE Indian government sounded the alarm to be a mutually supportive relationship between
this week over rebounding oil prices, saying that producers and consumers. It is in the interests
a sustained rally could hurt the global economic of producers that oil-dependent economies keep
recovery. growing steadily,” Pradhan said.
Indian Minister of Petroleum and Natural This is not the first time that India has com-
Gas Dharmendra Pradhan said stable oil prices plained about oil prices, with Pradhan decrying
were key to economies being able to emerge Saudi Arabia’s decision to cut 1mn barrels per
from the shadow of the coronavirus (COVID- day (bpd) of crude production in February and
19) pandemic. March even as other members failed to plug the
“Efforts at artificially distorting prices will gap. Pradhan described the move on January 19
have a dampening effect on the fragile global as a “contradiction” in talks with OPEC Secre-
economic recovery that is underway,” Pradhan tary-General Mohammad Barkindo during the
told the S&P Global Platts South Asia Commod- Atlantic Council. The minister said the policy
ities Virtual Forum on February 4. was “creating confusion for the consuming coun-
“While we do not favour too low prices, we tries”, before adding that OPEC’s decision might
also do not support high prices, which deny encourage India and other buyers to embrace
energy access to millions in India,” he added. alternative energy sources more readily.
Brent crude futures rose 1.74% to $58.46 per Pradhan took another shot at Middle Eastern
barrel February 3, while US West Texas Inter- oil and gas producers this week, noting that India
mediate (WTI) crude closed the day up 1.7% was striving to reduce its dependence on the
at $55.69 per barrel. Both benchmarks reached region’s energy exports and that part of New Del-
highs during trading – $58.94 and $56.33 respec- hi’s diversification strategy was to boost imports
tively – that have not seen since the start of 2020. of US liquefied natural gas (LNG).™
“If the world has to grow as a whole, there has

P6 www. NEWSBASE .com Week 06 10•February•2021