What is the News?
The share of India’s oil imports from OPEC countries dropped to its lowest in at least 20 years in the fiscal year ending March 2021.
India’s Oil Imports:
- India’s overall oil imports fell by nearly 12% in the Fiscal Year 2021 compared to the previous fiscal year.
- Of all those imports, the share of OPEC reduced to 72% from 80%. It is the lowest share of crude oil imports from OPEC since at least Fiscal Year(FY)-2002.
- Further, India bought more US and Canadian oil. This was at the expense of the reduction from Organization of the Petroleum Exporting Countries(OPEC) countries.
- US and Canadian oil accounted for about 7% and 1.3% respectively of India’s imports compared to 4.5% and 0.60% a year earlier.
- Moreover, the US has also emerged as the fifth-biggest oil supplier to India in FY21, up by two places from FY20.
Organisation of the Petroleum Exporting Countries(OPEC):
- It is a permanent, intergovernmental Organization created at the Baghdad Conference in 1960. Its founding members are Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
- Purpose: The purpose is to manage the supply of oil in an effort to set the price of oil in the world market. Further, it also aims to manage price fluctuations that might affect the economies of both producing and purchasing countries.
- Members: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela
- Secretariat: Vienna, Austria.
Source: The Hindu