India holds much more weight in the global market because of its constantly increasing demand for crude oil, Daniel Yergin, Co-founder and Chairman of Cambridge Energy Research Associates. India is the third largest importer of oil in the world. By 2040, it will be the second largest importer, says Yergin. Last week, the OPEC cut its output for the first time in eight years to deal with the global glut of crude oil. Yergin says the agreement was a historic one. He says oil prices would have drifted lower if the OPEC agreement did not happen. Co-operation between the OPEC members is very important to balance out the excess supply of crude in the world. The goal can be achieved even if all the members don't comply with the agreement, he says. Russia has played a key role in the OPEC agreement. It acted as a broker between Saudi Arabia and Iran to help the OPEC come to an agreement. There will also need to be co-operation between OPEC and non-OPEC members to deal with the issue.
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