Context: OPEC’s share of India’s oil imports fell to the lowest in at least two decades in the year to the end of March 2021 as overall purchases by Asia’s third-largest economy fell to a six-year low.

More in the News:

  • Total crude imports by the world’s third-biggest oil importer fell to 3.97 million barrels per day (bpd) in FY21, down 11.8% from last fiscal year.
  • This year India bought more U.S. and Canadian oil at same expense Organization of the Petroleum Exporting Countries (OPEC) to about 2.86 million bpd and squeezing the group’s share of imports to 72% from about 80% previous year.
  • The US emerged as the fifth biggest supplier of crude oil.
  • This is the lowest share since fiscal year 2002, before which crude oil data was not available. 

Brush Up Facts

About Organization of the Petroleum Exporting Countries (OPEC)

  • Its permanent intergovernmental organisation.
  • Institutionalized at the Baghdad Conference in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela (they are also known as founding members)
  • Currently, the Organisation has 13 member countries.
  • Out of other full time members Qatar terminated its membership recently in 2019

About OPEC+

  • It is refer as the alliance of crude oil producers, since 2017
  • Plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.
  • It commands 35 percent of global oil supplies and 82 percent of oil reserves.
  • Its prime objective is to undertake production restrictions to help resuscitate a flailing market.

About Asian Premium

  • It's an extra charge being collected by the OPEC countries from Asian Countries on crude oil sales.
  • Premium is determined for the large part by the official selling prices (OSPs) set by Saudi Arabia, Iran, Iraq, and Kuwait which supply about 15 percent of the world crude. 
  • They set prices on various factors on a monthly basis, adjusting to account inflation and demand and availability. 

Source: The Hindu