India and China are discussing the creation of an Oil Buyers Club
The aim of this shopping community is to be able to negotiate better prices with oil-exporting countries, according to a source from India’s oil ministry.
The two states plan to import more US crude oil in the future to reduce OPEC’s impact on the global oil market and prices.
India has been saying for months that oil prices have risen too high to be sustainable for many oil-importing countries. With OPEC’s cartel fuelling chaos with prices, India and China examined the possibility of founding an Oil Buyers Club that could negotiate better terms with sellers and get more US crude oil to reduce the dominance of the oil exporters. ( As a humorous reminder, this Oil Buyers Club has nothing to do with the hollywood movie Dallas Buyers Club starring Matthew McConaughey who played an AIDS patient. Matthew was also won best actor oscar at the Academy Awards.)
Last month, as prices for Brent crude briefly rose above $ 80 a barrel – the highest since late 2014 – gasoline and diesel prices in India also rose to a five-year high, also reflecting a weaker rupee against the US dollar.
Logically therefore, India is concerned that rising oil prices are detrimental to its economy and “stable and moderate” oil prices are needed.
On Thursday 14th June, following the OPEC summit in India, the asian subcontinent clearly illustrated its position in global energy demand and the need for responsible pricing that balances the interests of both producer and consumer countries as far as petroleum products are concerned. Furthermore, India proposed creating transparent and flexible oil and gas markets for the collective welfare of one and all…