Price war

Published: Wednesday 30 June 2004

India is joining hands with China and Japan in an attempt to unite countries of the region against West Asian oil producers. The latter are charging an extra us $1 for every barrel of crude oil they sell to these countries. This is over and above the prices at which they provide oil to Western nations.

India, China, Japan, South Korea and the Philippines met on the fringes of the International Energy Forum at Amsterdam in Holland to work out the collective initiative. They will approach the Organization of the Petroleum Exporting Countries (opec) in a unified manner. Background papers prepared by Japan, South Korea and India will be circulated among the Asian importers, and a representation finalised by consensus before forwarding it to the producers. Oil producers will be pressurised to keep prices within the agreed range. Recent terrorist attacks in Saudi Arabia have led to a hike in oil prices. Lately, there has also been a boom in energy demand in China and throughout Asia.

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