New Delhi, (IANS) : The 13-nation OPEC cartel said on Monday that a stable oil market, which will result from the recent move to cut output, is vital for India as it will guarantee assured supply for the country.

At a meeting in Vienna last week, the Organization of Petroleum Exporting Countries decided to reduce its production by 1.2 million barrels a day, beginning January 1.

“After six months, we will review the decision and we want an equilibrium price then, that will bring stability to the oil market. A stable oil market advantageous for countries like India as it can guarantee them future supply,” OPEC Secretary General Mohammed Sanusi Barkindo told reporters here on the sidelines of the Petrotech 2016 hydrocarbon event.

In India alone, oil demand is projected to rise to more than 10 million bpd by 2040 compared to 4.1 million bpd in 2015, he said.

“Such a substantial expansion in India and other fast growing economies in Asia will require supplies from all producing regions. Thankfully, OPEC member countries will play a crucial role in fuelling this dynamic growth. But for this to happen, continued investment in our member countries’ energy industries is required,” he said.

With non-OPEC countries also agreeing to a production cut of 0.6 million barrels per day, oil prices have regained the psychological $50 a barrel level.

OPEC will be meeting representatives from non-OPEC countries on December 10 in Vienna.

Barkindo said that among the non-OPEC countries, Russia has already guaranteed a production cut, which will cover 50 per cent of the expected share of non-OPEC nations in output reduction.

Meanwhile Indian Petroleum Minister Dharmendra Pradhan on Monday urged OPEC countries to consider striking a balance between the interest of producers and consumers when deciding on output cuts.

Inaugurating the 12th Petrotech conference, he said: “Consumption of petroleum products is price sensitive, as there is a genuine issue of affordability for a sizable population in India and other developing countries.

“Hence, while deciding the pricing aspect of crude oil, it should be factored in that the security of supply must, in turn, be matched by the security of demand.”

The Indian basket of crude oils closed trade on Friday at $51.46 a barrel, as per official data.