Oil Buyers Group NEWS

State-owned Oil and Natural Gas Corporation (ONGC) on Monday invited bids for the sale of initial 2 million standard cubic meters per day of gas from its KG basin fields at a minimum price of USD 6.6 per mmBtu.Initially, 2 million standard cubic metres per day of gas has been offered for sale through an e-auction. A senior ONGC official said the ceiling price is expected to rise to USD 5.5-5.6 at the next revision due on October 1.

Now that the OPEC meeting is over, the rumours about India and China forming oil buyers’ club has started worrying the cartel. The two countries account for a combined 17% of global oil consumption, so the uneasiness is nothing but genuine. Adding to this, now even Japan and Europe are likely to join the new cartel. The stance on India, China, and Europe on EV adoption could cripple OPEC.

While OPEC has been regulating oil prices to its own wish, oil importers like India and China are now into a discussion to form an ‘oil buyers’ guild, which could put in better negotiation in terms of prices. Getting more US crude into Asia to cut dominance of the oil block is also on the table. Sources say that India and China agreed to join hands against cartelization of oil producers.