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Haitham Al-Ghais, Secretary General of OPEC
The Organization of the Petroleum Exporting Countries (OPEC) is likely to capture a larger share of Indian oil imports over the coming decades due to its proximity to supply lines, Reuters reported, citing Haitham Al-Ghais, OPEC's Secretary General.
OPEC member states and other producers must adapt to the changing dynamics of the market, resulting from the redirection of trade routes since early 2022, and the increase in supplies of Russian oil directed to India and other places in Asia.
He added that oil producers in the Middle East remain ideal suppliers for the Indian market, due to their close proximity, which is an ideal match between suppliers and consumers, and cost-effective for all parties.
Al-Ghais foresees a greater role for OPEC members in Indian development away from oil. Commenting on OPEC members’ acquisition of 54% of India’s oil imports in January, he said: “We expect levels to rise further in the coming decades as India's economic development continues.”
OPEC’s share in Indian oil imports declined from nearly 65% in 2022 to only 50% last year, after India became the largest importer of Russian seaborne oil in the wake of the Ukrainian war, the report noted.
Al-Ghais also noted that many national oil companies affiliated with OPEC member states are planning to invest in the Indian refining sector.
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