NEW DELHI: The ongoing conflict between Israel and Iran will not lead to any oil shortage in the world, as there is more reserves available globally than there is consumption, said the Petroleum Minister Hardeep Singh Puri on Monday. Puri, speaking to the press, also mentioned that if any parties restrict availability, there are new suppliers in the market. For India, the minister noted that there are enough options to purchase from other countries.
“Today, there is more oil available in the world than there is consumption. If some parties hold back on availability, there are new suppliers on the market. In the short to medium term, I don’t foresee any shortage of oil globally. Currently, India is sourcing oil from 39 suppliers, up from 27. There is enough oil available, and we have sufficient choices to exercise. We can switch suppliers,” said the minister.
Crude oil prices in the international market increased sharply following a missile attack by Iran on Israel, raising investor concerns over potential retaliation by Israel.
Brent crude futures, which had been trading around $70 a barrel for the past three weeks, rose to $79.52 a barrel on Monday, while West Texas Intermediate also saw an increase, trading at $75.99 a barrel at 5:48 PM IST (Indian Standard Time).
The minister acknowledged that if tensions escalate, there could be a rise in crude prices. However, Puri maintained that India is monitoring the situation and is confident in its ability to navigate it as it has in the past.
“We are watching the situation very closely. Energy availability can get affected if tensions escalate. I am very confident that we will be able to navigate the situation, as we have done so far,” the minister added.
Regarding potential price cuts for petrol and diesel by oil marketing companies (OMCs) in the domestic market, the minister indicated that OMCs will determine the prices of petrol and diesel in the country. The last revision in fuel prices took place in March, with a Rs 2 per litre cut for both petrol and diesel.
Puri says country monitoring the situation
The minister acknowledged that if tensions escalate, there could be an increase in crude prices. However, Puri maintained that India is monitoring the situation and is confident in its ability to navigate it as it has in the past