G-20 backs output cut deal as India, Saudi pitch for stable oil market
NEW DELHI: Energy ministers of G-20 countries on Friday backed the deepest-ever production cut deal to rebalance the global oil market, with India and Saudi Arabia – representing the high table of consuming and producing countries – calling for “stable, affordable, reliable and accessible” supplies to enable basic services in times of COVID-19 and assist in economic recovery.
“India has always advocated a stable oil market, which is reasonable for producers and affordable for consumers… India was, and will continue to be, the global energy demand centre,” oil minister Dharmendra Pradhan told his G-20 counterparts to assure them of continued demand from the world’s fastest-growing energy market, with consumption rising at 5% annually.
G-20 accounts for 70% of global oil production and 80% consumption. The virtual summit was convened by Saudi Arabia, which heads the grouping’s energy dialogue, after oil prices last month crashed to their lowest level in 18 years as the coronavirus pandemic knocked off 30% of global demand.
