India calls for 'calm oil market' following Saudi, Abu Dhabi talks

Quantum Commodity Intelligence – India's new Petroleum Minister Hardeep Singh Puri vowed Friday to work with oil producers Saudi Arabia and United Arab Emirates to reduce volatility in oil markets and make crude prices 'affordable'.

Puri, who took charge of the ministry last week, spoke to Saudi oil minister Prince Abdulaziz bin Salman on Thursday – a day after his conversation with Ahmed Al Jaber, UAE's minister of Industry and chief executive of Abu Dhabi National Oil Co (ADNOC).

Relationships between Middle East producers and India have been strained this year, with the latter aggrieved at producers' holding back capacity - a move that has seen oil prices increase by around 80% since last November.  

In a tweet Puri said; "I conveyed my desire to work with His Royal Highness Prince Abdulaziz to bring greater predictability and calm in the global oil markets, and also to see hydro carbons become more affordable."

But behind the scenes India is said to be increasingly aggrieved at high oil prices, as the world's third biggest oil consumer and oil importer is facing record retail prices for petrol and diesel.

Middle East sources have, however, pointed to India's domestic tax policy for the sharp hike in retail prices, which have become a major political issue.

India has diversified its crude-import portfolio but with relatively high prices for grades pricing against Dated Brent or WTI, Middle East barrels are still the most competitively priced. 

Additionally, Indian refiners enjoy a major freight advantage in shipping oil from the Middle East.