India, China to form oil buyers club

To be able to negotiate better prices with oil exporting countries, India and China discuss creating an 'oil buyers' club', India's Petroleum Ministry said, cited by Oilprice.com. They will be looking to import more US crude oil in order to reduce OPEC's sway, both over the global oil market and over prices.

To be able to negotiate better prices with oil exporting countries, India and China discuss creating an 'oil buyers' club', India's Petroleum Ministry said, cited by Oilprice.com. They will be looking to import more US crude oil in order to reduce OPEC's sway, both over the global oil market and over prices.

“With oil producers' cartel OPEC playing havoc with prices, India discussed with China the possibility of forming an 'oil buyers' club' that can negotiate better terms with sellers as well as getting more US crude oil to cut dominance of the oil block,” a tweet from India's Petroleum Ministry said. The country has been saying for months that oil prices have risen too much to be sustainable for many oil-importing countries.

Last month, as Brent Crude prices briefly broke above $80 a barrel - the highest since late 2014 - gasoline and diesel prices in India surged to a five-year high, also due to a weakening rupee against the US dollar.

India is concerned that the rallying oil prices are hurting its economy, and its Petroleum Minister Dharmendra Pradhan reiterated the need for “stable and moderate” prices.

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