Just after the warning given by Organization of Petroleum Exporting Countries (OPEC) to start reducing the prices of crude cartel else demand will curb, Indian Oil Corporation Chairman Sanjiv Singh also suggested that the demand cannot be seen in isolation to prices specially for a price sensitive market like India.
Sanjiv Singh went on to say: If prices continue rising at the pace they’ve been gaining in the past month and a half, the South Asia nation’s consumers will likely see alternatives such as electric vehicles and gas as more cost-effective, replacing 1 million barrels of the country’s daily oil use by 2025.
He further went on to say: “Demand cannot be seen in isolation to prices, especially for a price sensitive market like India. You may not see an impact on demand in the short term, but in the long term, definitely it will have implications.”
While the Organization of Petroleum Exporting Countries and its allies have agreed to boost curbs to alleviate tightness, concerns remain that the additional barrels won’t be enough to meet growing demand, spurring US President Donald Trump to tweet a series of tirades against the cartel.