The Financial Times is reporting that India is looking to the US as it seeks alternatives to OPEC. India is complaining that Saudi Arabia is curtailing supplies and is marking up their prices.
The US, he noted, had some fields that were able to produce economically at $25 a barrel, as costs have come down after the price collapse that has entered its third year.
“The energy business has changed very fast in recent years,” he said. “We can’t put all of our eggs in a single basket.”
Mr Pradhan used his meeting with OPEC delegates to air grievances with the group of producers from which India sources 86 per cent of its oil supplies. This feeds into its refineries that have processing capacity of 4.6m barrels a day.
He said despite the collapse in prices since the middle of 2014, Asian customers traditionally dependent on Middle Eastern oil to meet their energy needs continue to pay a premium for crude compared with buyers in Europe or the US.
India said oil output cuts by OPEC producers could prove a threat to its energy security, which together with higher prices, is pushing the world’s third-largest crude consumer towards alternative suppliers.