OPEC+ status quo augurs well for India
NEW DELHI: OPEC+, the grouping of 13 oil exporting countries and Russia, on Sunday left current production levels unchanged, deciding perhaps to watch how Friday’s G7 price cap on Russian seaborne crude pans out amid concerns over demand from China.
The move augurs well for India as any cut in output would have led to an immediate spike in oil prices and erase relief from the recent slide. Though it is early days, industry watchers said OPEC appears to have bought the market time to adjust to life after the $60 per barrel cap comes into effect from December 5.
The situation, as it stands now, will hasten the directional change in the flow of oil. The flow of Middle East crude to Europe will rise, making more discounted Russian crude available for India, which has not signed up for the cap.
