Modi is an important factor for crude price slash – Saudi Minister

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Modi’s persuasion is an important factor in global crude prices cooling down says the Saudi Arabia’s minister of Energy Khalid.A.Al-Falith.

A month before, Prime Minister Narendra Modi warned oil producers such as Saudi Arabia that high crude prices were hurting the global economy and sought a review of payment terms to provide temporary relief to the local currency.

India, the world’s third-biggest oil consumer, has been battered by high crude oil prices over the past two months that have sent retail petrol, diesel and LPG rates to record high, posed inflationary risks and together with a sliding rupee threatened to upset its current account deficit. Also, unrelenting fuel price rise since mid-August has negated cut in taxes and subsidy.

The Prime Minister spoke about the various policy initiatives and developmental measures undertaken by his government in the sector including liberalization in gas pricing and marketing, open acreage licensing policy, early monetisation of coal bed methane, incentives for discovery of small fields and seismic survey at a national level. Talking of ongoing commercial exploitation, he made a special mention of extension of production sharing contracts.

The Saudi Arabia’s Ministry of Energy, Khalid.A.Al-Falith said that Prime Minister of India Narendra Modi is an important factor in cooling down the global crude prices.