Union Minister Puri predicts stable oil prices in India, calls for producer-consumer dialogue

Oil prices in India are expected to remain stable amid the rising geopolitical tensions as the country has several options to buy crude oil, said Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, on Tuesday.

Addressing concerns over potential supply chain disruptions, Puri emphasized that India has strategically positioned itself to manage such situations effectively, with access to a diverse range of crude oil suppliers.

“More supplies from countries such as Brazil and Guyana are coming into the market. Currently, the global supply of oil outpaces the consumption, ensuring a stable market,” Puri said in a social media post on Tuesday.

He also added that “despite geopolitical tensions in some parts of the world, there is no shortage of crude oil in the world. Consuming countries have several options to choose from.”

During the ADIPEC energy conference in Abu Dhabi, Puri called for discussions between oil producers and consumers to establish a “realistic price” for oil.

Speaking to Reuters on Monday during the annual energy industry event ADIPEC in Abu Dhabi, Puri expressed hope that all stakeholders in the oil sector would recognize the importance of collaboration. “I’m hoping as a professional that all the players in this game will see a reason that… both producers and consumers can sit down together and have a discussion on what is a realistic price because it is not as if some production is taken off,” he said.

Puri emphasized that there is no oil shortage as new producers are entering the market while some countries are ramping up their output.

Commenting on OPEC+’s decision to postpone output increases for a month, he said, “It’s your asset—you decide not to utilize the asset; you can keep it there; there will come a time after a few years when there is no need for the asset; there is no use for it.”.

Puri predicted that global oil demand is set to undergo a change in the next five years, driven by the adoption of green hydrogen and the transition to cleaner energy sources.