The world’s fastest-growing crude consumer, India, has a warning for the Organization of Petroleum Exporting Countries (OPEC): Start reducing prices, or waning demand will mean a curb in purchases from the crude cartel.
At least that’s the suggestion from Sanjiv Singh, chairman of Indian Oil Corporation, the country’s biggest refiner. If prices continue rising at the pace they’ve been gaining in the past month and a half, India’s consumers will likely see alternatives such as electric vehicles and gas as more cost effective, replacing 1 million barrels of the country’s daily oil use by 2025, he said.
“Demand cannot be seen in isolation to prices, especially for a price sensitive market like India,” Singh said. “You may not see an impact on demand in the short term, but in the long term, definitely it will have implications.”
Fears of a global supply crunch following outages from Libya and Venezuela to Canada have led to an almost 5 per cent jump in oil since April. Read More