Relevance with India

OPEC and India have a complex relationship over the years, which is centered around the
supply and pricing of crude oil. India is one of the largest energy consumers and its energy
needs are heavily dependent on oil exports. The further points shall explain in detail the
relationship of India and OPEC.
1.Dependence on Oil Imports: –
India is the third-largest oil consumer and imports more than 80% of its total crude oil
requirement. India imports roughly 70% of its crude from the OPEC members. On a
decadal comparison, the imports have reduced drastically from 87% to 70% in 2021-22.
However, OPEC still accounts for the majority of India’s oil imports. The reduced production
by OPEC+ will have a negative impact on India.
The importance of India on Russia which is a OPEC+ member, as India is also buying
Russian Oil which is being offered by Russia at a cheaper market price, Russia is basically
importing 1/3rd of India’s total crude oil needs.
The price for each barrel including freight costs was $68.17, down from $70.17 in May and
$100.48 a year earlier, according to the latest figures from India’s Ministry of Commerce and
Industry. While that is higher than a $60 cap imposed by Western nations on Moscow, the
threshold does not include shipping.
India has become one of the world’s top consumers of cheaper Russian crude since the war,
along with China. Data from Kpler shows Indian imports dipping over the past two months,
with flows expected to fall further in August as the OPEC+ producer fulfils a pledge to trim
exports. The analytics firm sees shipments to the South Asian nation rebounding from
October, however.
We can see that the Majority of Indian Imports are coming from the OPEC countries and due
to the aforementioned reasons, we can say that the OPEC is an important ally for India.
2. Diplomacy and foreign policy of India:

OPEC’s decision on oil production levels and pricing policies directly affects India’s energy
costs and its balance of payments. When OPEC reduces production, it leads to higher oil
prices which can lead to the majority of money being spent on oil/
Due to this reason India has engaged in diplomatic efforts to secure stable and affordable oil
supplies. These negotiations revolve around pricing mechanisms, supply agreements and
long- term contracts. India has sought favourable terms such as discounts and extended credit
from OPEC suppliers.
India also has key strategic partnership with Key OPEC members such as Saudi Arabia and
UAE, through various bilateral agreements, these key areas not only include energy
cooperation but also areas like trade, defence, and investment.
3. Global Energy Transitions:
 As the world shifts towards cleaner and more sustainable energy source, the OPEC Nations
are also adapting their strategies. India also is looking towards alternative sources of energy
to reduce their dependency on import of oil from the countries. As the world shifts towards
cleaner and more sustainable energy sources. OPEC nations are also adapting their strategies.
This transition may lead to changes in the nature of OPEC’s relationship with India.
To conclude, the geopolitical considerations are a crucial aspect of the India-OPEC
relationship. India’s energy security, regional alliances and conflicts, global diplomacy and
efforts to diversify its energy sources all intersect with the geopolitical landscape. Navigating
these factors requires careful diplomacy and strategic decision-making to ensure a stable and
secure energy supply for India.

OPEC v. West.
OPEC has been historically viewed as a significant challenge to the US and its allies. This
challenge stems from the OPEC’s dominant position in the global oil market.
1. OPEC’s dominance in Global Oil Market.
OPEC members are the major oil suppliers in whole world with OPEC countries accounting
for 30% of total oil supply and OPEC+ accounting for 40% of total oil supply. The impact of
OPEC’s power to disrupt the demand and supply chain by adjusting price and production
levels. Many countries are dependent on the oil imports and therefore, even a slight change in
the price levels effect almost all the countries involved.
2. West’s Response to OPEC
The US again and again has tried to warn the OPEC not to disrupt the production chain and
has again brought out the NOPEC, which they last brought out in (No oil producing and
Exporting cartels) bill wherein they would be able to take OPEC in international courts
because they are using oil as a weapon by effecting the production chain.
This is not the first time that the US has brought out this bill, but due to the Saudi Arabia it
has not passed this bill as Saudi Arabia is one of their biggest weapon importers and if Saudi
Arabia decides to boycott west and go towards buying Russian Weapons, then that would not
only cause loss for the US but also their major rivals would get an advantage over them.
Therefore, the US has not yet passed this bill despite giving constant threats to the OPEC that
their price manipulation strategy shall not be tolerated.
US also tried to impose sanctions on the countries buying the Russian Oil, which is an
OPEC+ member, but the Indian Foreign policy has taken a firm stance and is buying cheaper
Russian oil. In the view of the current situation of the ongoing Russia Ukraine War, when the
oil prices were increasing then the US imposed a price Cap of $60, per barrel.
To conclude, the US and its allies view OPEC as a challenge due to their dominance in the
Oil market.
Conclusion:
In conclusion, OPEC (Organization of the Petroleum Exporting Countries) has played a
central and often complex role in the global energy landscape. It is a cartel of oil-producing
nations that collectively manages a significant portion of the world's oil reserves. Over the
years, OPEC has exerted considerable influence on oil prices, supplies, and global energy
geopolitics.
In essence, OPEC's influence extends beyond the oil market; it has geopolitical, economic,
and environmental implications that impact countries worldwide. The dynamics between
OPEC and the rest of the world will continue to evolve as energy transitions and geopolitical
realities shape the future of the global energy industry. Navigating these challenges requires
careful diplomacy, strategic planning, and a commitment to energy security and
sustainability.
The above points mentioned have covered most of the aspects related to OPEC, it is
important for India to keep a good relation with the OPEC countries due to its dependency on
oil imports