Oil producers, importers divided on price volatility<\/p>\n
SINGAPORE (AFP): A gulf between oil-producing and importing
\ncountries over how best to combat price and supply volatility was
\nexposed at a regional petroleum conference here Tuesday.<\/p>\n
India, one of Asia's biggest oil importers, urged major
\nproducers to act immediately to bring down high oil prices which
\nare aggravating the global economic downturn, particularly in
\ndeveloping countries.<\/p>\n
\"It is my perception that low oil prices would stimulate
\ngrowth in today's sagging global economy and thereby result in
\nhigh oil demand, directly benefiting the oil exporting countries,
\nand this will be a win-win situation for both the producing and
\nconsuming countries,\" said Ram Naik, India's Minister of
\nPetroleum and Gas.<\/p>\n
\"The volatility in international oil prices produces adverse
\neffects in the economic conditions of a country. The effect is
\nmore severe in case of developing countries which cannot afford
\nhigh oil prices,\" Naik said on the second day of the three-day
\nconference.<\/p>\n
India imports nearly 70 percent of its oil needs, with the oil
\nimport bill last year totaling 800 billion rupees (US$17
\nbillion).<\/p>\n
But Oman, a non-OPEC oil producer with a daily production of
\n900,000 barrels of crude, disagreed that oil producers should
\nbear the sole responsibility of resolving price volatility.<\/p>\n
\"To us the producers, we really need to sell whatever we
\nproduce. It is no secret that many producing nations rely heavily
\non the oil revenue,\" said the sultanate's oil and gas minister
\nMohammed bin Hamad al-Romhi.<\/p>\n
\"We are also developing countries and we are very sympathetic
\nto the developing countries when the price is high,\" he said.<\/p>\n
According to Naik, a prolonged period where crude oil prices
\nstayed above $20 a barrel would be detrimental to importing
\nnations, especially the developing countries.<\/p>\n
\"Such unrelenting high oil price scenario is apparently taking
\nits toll on the economies across the globe, and more severely on
\nthe developing countries,\" Naik said.<\/p>\n
At the moment, the average price of Brent North Sea crude for
\nOctober delivery is above $26 a barrel.<\/p>\n
The Indian minister called on the oil producers to help the
\ndeveloping countries cope with the high oil prices by offering
\ncredit extension, price discounts and deferred payment
\nfacilities.<\/p>\n
\"This would certainly help (in) reducing the adverse impact on
\nthe economic development of the importing countries during the
\nperiod of high oil prices,\" said Naik.<\/p>\n
But Oman's Rohmi said revenues from oil exports are the
\nmainstay of the oil producing countries.<\/p>\n
\"Oil is our blood. We take it extremely seriously. But sadly
\nno one talks to us when prices are low,\" Rohmi said.<\/p>\n
He added that importing countries also benefit from the
\nrevenues generated from oil.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/oil-producers-importers-divided-on-price-volatility-1447893297",
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