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India will be able to navigate through any hit to oil supplies from the potential widening of the Middle East conflict, oil minister Hardeep Singh Puri said on Monday.
India, the world’s third-biggest oil importer and consumer, imports about 85% of its over 5 million barrels per day of oil needs, with a significant part of that coming from Middle East producers.
Global oil prices have risen due to fears of a wider Middle East conflict and potential disruption to exports from the major oil producing nations, with Brent nearing $80 a barrel. [O/R]
“We are watching the situation very, very carefully. Energy availability can get affected if there is an exacerbation (of the crisis in the Middle East),” Puri said at an event to launch the 2024 ExxonMobil Global Energy Outlook.
Puri said India will, however, be able to navigate the situation as the market is awash with oil supplies.
“Today, there is more oil available in the world than there is consumption. If some parties hold back on the availability, there are new suppliers in the market also,” he added.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known collectively as OPEC+, has been cutting oil production in recent years to support prices because of weak global demand.
The Group is due to raise production from December.
“In the short-to-medium term I don’t see any shortage of oil in the world. There is enough oil available and we have enough choices to exercise. We have ensured sufficient availability in the past, and will do it in the future as well,” Puri said.
Fears of a widening of the conflict in the Middle East contributed to India’s Nifty 50 and S&P BSE Sensex benchmark indexes closing 0.87% and 0.78% lower, respectively on the day.
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