(LiveMint)
China and India, the world’s second and third largest oil importers, respectively, are nearing an arrangement to form a buyers’ bloc to bargain collectively for oil supplies and reduce the influence of the Saudi Arabia-led cartel on oil prices, according to three officials aware of the development.
The two strategic rivals have made progress on joint sourcing of crude oil, with Li Fanrong, deputy administrator of China’s National Energy Administration, visiting New Delhi last month. India and China are attempting to form a buyers’ club that may also persuade the Organization of Petroleum Exporting Countries (Opec) oil cartel to pare the premiums placed on oil sold to Asian nations.
Tightening US sanctions against Iran and Opec’s production curbs have driven oil prices to more than $75 a barrel for the first time in 2019. Higher oil prices stoke inflation and hurt economic growth in India, which imports more than 80% of its oil requirements.
