New Delhi: Hardeep Singh Puri, the Union Minister for Petroleum and Natural Gas, expressed optimism on Thursday that oil prices would fall, noting India's efforts to diversify its energy import sources.
As new sources of supply become available, the price of oil will decrease. We have plenty of oil around, the minister stated, underlining India's aggressive approach to securing energy supplies from a variety of sources.
Addressing concerns about possible US sanctions, Puri stated. I am not concerned at all. If something happens, we will handle it, he said, adding, "Ek darwaza band hota hai to doosra khul jata hai" (when one door shuts, another opens).
He emphasized that India has greatly diversified its oil import network. India has diversified its supply sources from 27 to 40 nations. India accounts for 16% of oil market growth, and data indicate that this figure might rise to 25%.
Commenting on the potential of secondary sanctions by the United States against nations that do business with Russia, the minister emphasized the world's reliance on Russian energy.
He said that Russia contributes for 10% of world output. We have the study that if Russia was not included, the price would have increased to $130 per barrel. Even Turkey, China, Brazil, and the EU have purchased oil and gas from Russia, according to him.
Last week, the minister stated that India's continued purchase of crude oil from Russia helped stabilise global energy prices, and that stopping oil trade with Russia would have pushed crude prices to over USD 120-130 per barrel.
If nine million barrels of global oil supplies of around 97 million barrels had vanished abruptly, the entire world would have had to cut consumption by more than 10%, which is impossible, he added.
