China and India will fight OPEC prices with US oil

The largest oil buyers in Asia want to reduce dependence on supplies from OPEC

India and China, the largest buyers of oil in Asia, are discussing how to increase the import of crude oil from the United States to Asia in order to reduce their dependence on supplies from the Organization of Petroleum Exporting Countries (OPEC). This is written by Bloomberg referring to the government official of India.

With the help of American oil, countries want to press OPEC to keep oil prices under control.

The publication expects that cooperation between two major oil buyers will add to the problems of OPEC, which already competes for a share in the Asian market with oil from the Gulf of Mexico and shale deposits in Texas. OPEC is also tormented by internal contradictions: Saudi Arabia stands for easing the production restrictions, and Iran, Iraq and Venezuela are against increasing production.

"The diversification of supply sources will benefit both India and China by increasing competition among oil producers," said Abhishek Kumar, an analyst at Interfax Global Energy in London. In his opinion, the purchase of oil at the lowest price is vital for two energy-intensive Asian consumers.

Recall that in May 2018 the price of a barrel of Brent crude oil for the first time in several years exceeded $ 78 , reaching $ 78.14. However, after the growth of average daily oil production in the US, prices again fell into recession . 

Bloomberg.com