Petroleum Minister appeals to oil-producing countries to ease production cuts to stabilise global economic recovery

In his address at the IEA-IEF-OPEC Symposium on Energy Outlooks on Wednesday, Petroleum Minister Dharmendra Pradhan appealed to oil-producing countries to ease production cuts to stabilise the fragile global economic recovery.

The symposium was held virtually under the patronage of the Minister of Energy of Saudi Arabia HRH Prince Abdulaziz bin Salman Al Saud.

Pradhan highlighted that there was unmous agreement among international agencies, like IEA, OPEC, vis-a-vis reports released by them on India's robust energy growth profile during 2021 and beyond. While the world's total primary energy demand would increase at less than 1 per cent per annum till 2040, India's energy demand would grow at about 3 per cent per annum till 2040.

He appealed to the oil-producing countries to have a rethink on continuing and increasing production cuts. He reiterated that in the collective interests of both producing and consuming countries, prices should be reasonable and responsible.

The recently-released IEA's India Energy Outlook 2021 highlights that India has now emerged as the key center for global energy demand, and is expected to become the world's largest energy consumer soon.

Pradhan said that there is a need to allow consumption-led recovery that has just taken root in several emerging economies, including India. The rising oil prices during the last few weeks are hurting the fragile global economic recovery leading to significant demand contraction.

He further added that India had supported the joint decision by major oil-producing countries to cut oil production in April last year amid a sharp fall in demand due to the Covid-19 pandemic.

The symposium saw the presence of heads of all top inter-governmental energy agencies such as IEF, IEA, OPEC, IRENA, and the GECF. HE Norma Rocio Nahle Garcia, Secretary of Energy, Mexico, and HE Timipre Sylva, Minister of State of Petroleum Resources of Nigeria participated in the event.

( With inputs from ANI )