'Enough Available In World': Hardeep Singh Puri On Oil Supply Amid Iran-Israel Conflict

Oct 09,2024

Petroleum Minister Hardeep Singh Puri dismissed the concerns about crude oil supply disruptions stemming from tensions in West Asia. It confirms that the country is well-prepared to handle any fallout. After Iran’s missile attack on Israel, international crude oil prices have risen from about $70 (Rs 5,876) a barrel to close to $79 (Rs 6,632) a barrel in less than a week. It happened due to the possibility of Israel retaliating and escalating the conflict on Iran.

While talking to CNBC-TV18, Hardeep Singh Puri said, “There is no need to panic. There is more than enough oil available in the world.” India is the world’s third-largest oil importer and consumer of the world. It meets 85 per cent of its crude oil needs through imports. Despite this heavy reliance, Puri expressed confidence in India’s ability to manage risks.

“Yes, there is concern, but as the Petroleum Minister, I monitor the global situation six times a day. We are reasonably confident we will be able to navigate it, like in the past,” he assured. When asked about crude oil prices, Puri played down concerns, stating, “No, I am not concerned. I watch it daily. My preoccupation and yours are slightly different. You are looking for a sensational headline; I am looking for a calm, business-as-usual environment.”

India’s oil supply is unaffected for now with global oil availability at over 102 million barrels per day even after OPEC’s cuts. In the international market even if some countries stop production or there are oil supply-related problems, new suppliers are always ready to fill this gap. After Iran’s missile attack, it is feared that Israel can target the oil or nuclear installations of oil producer Iran. If this happens, Iran can respond by directly attacking Israel or closing the Strait of Hormuz (sea corridor).

The Strait of Hormuz, located between Oman and Iran, is considered important for oil transportation. One-fifth of the global oil passes through this strait. Crude oil from all major oil-producing countries – Saudi Arabia, Iraq, Kuwait and the United Arab Emirates (UAE) – is exported through the Strait of Hormuz. Of these, only Saudi Arabia and the UAE have oil pipelines that can cross the Strait of Hormuz.