Global crude oil prices surged on Monday amid renewed uncertainty over Iran-US peace talks, with Brent crude rising as much as 3.6% to $108.10 a barrel before paring some gains. Brent was later trading at $106.50 a barrel, up 2.05% at 19.50 PM IST, while West Texas Intermediate (WTI) crude was at $94.14, up 1.87% .
Oil prices have remained highly sensitive to developments in West Asia amid uncertainty over the progress of peace negotiations. Iranian Foreign Minister Abbas Araghchi said on Thursday that his country was prepared for a "doomsday war" after the Trump administration rejected Iran's proposal on the Strait of Hormuz.
Meanwhile, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said India had so far successfully navigated disruptions to crude oil and natural gas supplies caused by the West Asia crisis and disruptions in the Strait of Hormuz, but acknowledged that the global energy situation remained challenging.
"So far we have navigated that uncertainty. In fact, I would say we have insulated ourselves from the turbulence," Puri said at an event organised by the Merchants’ Chamber of Commerce and Industry here.
"Going forward, it constitutes a challenge. But I can assure you, we won't let things get out of control," he added.
Puri said India had reduced its dependence on individual regions by expanding its crude sourcing network to 41 countries from 27 earlier. He said Qatar, the UAE and Saudi Arabia, three major energy suppliers to India, are located in or around the conflict zone linked to the war on Iran.
Rerouting crude shipments through the Red Sea also carries risks, Puri said, citing potential threats to shipping from attacks by Yemen-based Houthi militants.
The minister identified LPG availability as his biggest concern, particularly as India's dependence on cooking gas has increased significantly. The number of domestic LPG connections has risen from 14 crore in 2014 to 33.5 crore, he said.
To strengthen domestic supplies, India has increased LPG production to 54,000 metric tonnes a day from 34,000 metric tonnes. The government is also encouraging consumers to adopt alternative energy sources where possible.