Oil buyers, producers dialogue needed for market stability, says Oil Minister Puri

Hardeep Singh Puri

India's Oil Minister Hardeep Singh Puri called on November 4 for discussions between oil producers and consumers to stabilise prices.

Oil prices rose more than 2 percent following a decision by OPEC+ to delay by a month plans to increase output.

India, the world's third largest oil consumer, relies on overseas purchases for more than 80 percent of its oil needs.

"I'm hoping as a professional that all the players in this game will see a reason that… both producers and consumers can sit down together, have a discussion on what is a realistic price because it is not as if some production is taken off," Puri told Reuters.

He reiterated that there was no shortage of oil as new producers were coming into the market while some countries were expanding their output.

"So I think we need to have stability and predictability," Puri said on the sidelines of the annual energy industry event ADIPEC in Abu Dhabi.

Of the OPEC+ decision, he said: "It's your asset – you decide not to utilize the asset, you can keep it there, there will come a time after a few years there is no need for the asset, there is no use for it".

In contrast, there were some producers who wanted to maximise output to quickly monetize their assets, he added.

He said technological changes such as green hydrogen and the transition to cleaner energy will change the global oil demand landscape in five years.

Nevertheless, he expects India to source more oil supplies from the Gulf region as the global economic geography evolves.