Output hike by OPEC+ to help cut India's import bill

THE PLAN OF Organisation of Petroleum Exporting Countries (OPEC) to increase oil production is expected to lower prices, benefiting India, given the country is a net importer of crude oil, analysts say.

- ARUNIMA BHARADWAJ

THE PLAN OF Organisation of Petroleum Exporting Countries (OPEC) to increase oil production is expected to lower prices, benefiting India, given the country is a net importer of crude oil, analysts say. The global oil market is currently subdued with oil prices hovering in the lower range of $70 per barrel and a potential increase in oil supply comes in favour of the country's downstream sector.

"OPEC+ production increase has largely been on expected lines, and so was the market reaction. The oil market remains fundamentally weak, and the latest OPEC+ increase adds to that," said Pulkit Agarwal, head of India content (cross commodities) S&P Global Commodity Insights.