{"id":298764,"date":"2018-06-14T12:27:40","date_gmt":"2018-06-14T06:57:40","guid":{"rendered":"http:\/\/www.tehelka.com\/?p=298764"},"modified":"2018-06-28T15:27:36","modified_gmt":"2018-06-28T15:27:36","slug":"india-china-likely-to-form-oil-buyers-club-to-cut-opecs-dominance","status":"publish","type":"post","link":"https:\/\/tehelka.com\/india-china-likely-to-form-oil-buyers-club-to-cut-opecs-dominance\/","title":{"rendered":"India, China likely to form oil buyers club to cut OPEC&#8217;s dominance"},"content":{"rendered":"<figure id=\"attachment_298765\" aria-describedby=\"caption-attachment-298765\" style=\"width: 301px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\" wp-image-298765\" src=\"http:\/\/www.tehelka.com\/wp-content\/uploads\/2018\/06\/oil-239x300.jpg\" alt=\"\" width=\"301\" height=\"378\" \/><figcaption id=\"caption-attachment-298765\" class=\"wp-caption-text\">Picture For Representation<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'times new roman', times, serif; font-size: 14pt;\">India, China kicked off formal talks in Beijing on June 11 to forge a common front on oil. They were considering the formation of oil buyer&#8217;s club, a bloc against OPEC (Organization of the Petroleum Exporting Countries) to counter tough bargain offered by OPEC on oil prices.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'times new roman', times, serif; font-size: 14pt;\">India, China both together accounted for 17 % of world oil consumption.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'times new roman', times, serif; font-size: 14pt;\">Production cuts by OPEC have led to global oil prices hitting a four year high in May 2018 that forced a Rs 3.8 per liter hike in petrol and Rs 3.38 a liter hike in diesel prices.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'times new roman', times, serif; font-size: 14pt;\">\u201cThe timing is right. The boom in the US oil and gas production gives us leverage against OPEC,\u201d an official said.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'times new roman', times, serif; font-size: 14pt;\">The move comes in the backdrop of shifting of global oil market&#8217;s centre to Asia and simultaneously working to get more US crude oil to Asia.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'times new roman', times, serif; font-size: 14pt;\">In April 2018, oil minister Dharmendra Pradhan proposed an alliance between Indian and Chinese state-run oil companies to cut dominance of OPEC. After meeting with Wang Yilin, China National Petroleum Corporation chairman and Li Fanrong deputy administrator of China\u2019s National Energy Administration, Pradhan said, \u201cAs consumers, we have certain mutual interests. We agreed to promote (business-to-business) cooperation\u2026 and we are hopeful that in future buyers will be able to dictate prices.&#8221;<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'times new roman', times, serif; font-size: 14pt;\">&#8220;Possibilities of joint sourcing of oil as well as combined bargaining to bring down Asian premium was discussed. The similar collaboration will be proposed to Japan and Korea as well. With CNPC or its affiliates selling in the overseas market a large portion of oil produced from fields it owns in third countries, India expressed interest in buying the Chinese firm\u2019s equity oil directly,&#8221; the official said.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'times new roman', times, serif; font-size: 14pt;\">By 2023, oil demand will hit 104.7 million barrels per day, up 6.9 million bpd in 2017, according to the International Energy Agency (IEA).<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'times new roman', times, serif; font-size: 14pt;\">\u201cAs has been the case for some years, China and India together will contribute nearly 50% of global oil demand,\u201d the IEA said in a report.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India, China kicked off formal talks in Beijing on June 11 to forge a common front on oil. They were considering the formation of oil buyer&#8217;s club, a bloc against OPEC (Organization of the Petroleum Exporting Countries) to counter tough bargain offered by OPEC on oil prices.\u00a0 India, China both together accounted for 17 % [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":299513,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[53],"tags":[596,2506,666,2398,574,2507,2508,2509,2510,50],"_links":{"self":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts\/298764"}],"collection":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/comments?post=298764"}],"version-history":[{"count":1,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts\/298764\/revisions"}],"predecessor-version":[{"id":299514,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts\/298764\/revisions\/299514"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/media\/299513"}],"wp:attachment":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/media?parent=298764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/categories?post=298764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/tags?post=298764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}