Wed. Feb 28th, 2024

India is not overly depending on anybody for oil — not even Russia, India’s Minister of Petroleum and Pure Fuel informed CNBC, including that his nation has diversified its sources.

“India does not recover from depending on anybody,” Hardeep Singh Puri informed CNBC’s Tanvir Gill when requested if his nation was too depending on the Kremlin.

Since Russia’s invasion of Ukraine in February final 12 months, India’s refiners have been snapping up discounted Russian oil. Moscow has since leapfrogged to develop into India’s main supply of crude oil, accounting for about 40% of India’s crude imports.

Generally excessive oil costs can develop into a self fulfilling prophecy when it comes to leading to assembly of rapid and quick time period wants.

Hardeep Singh Puri

India’s Minister of Petroleum and Pure Fuel

India is the world’s third largest power importer, and purchases greater than 80% of its crude oil from worldwide markets.

Requested if India was getting a $15 or $30 low cost per barrel on Russian crude, Puri stated: “Sure, there have been reductions. However there have been reductions coming from throughout.”

“If there is a 30% low cost, the Russians are placing a ribbon round it and sending it to us free. That is what it means,” Puri stated.

India has additionally been shopping for extra from nations within the Center East, resembling Iraq, he added.

“We’re diversified. We used to purchase from 27 sources — immediately we’re shopping for from 39 sources,” he stated, naming suppliers from Saudi Arabia, the UAE, and Kuwait amongst them.

In line with knowledge from S&P World in July, India’s crude oil sources come largely from Center East and Russia.

There may be sufficient oil obtainable on this planet. What you have to be actually worrying about is whether or not the buyer could have the sources or the cash to pay for it.

Oil costs have risen 12% off their lows in June to hover at round $79 ranges per barrel at present.

World benchmark Brent traded 0.35% larger at $83.65 a barrel Friday, whereas the U.S. West Texas Intermediate futures climbed 0.38% to $79.35 per barrel.

Inventory Chart IconStock chart icon

Brent vs. West Texas Intermediate futures

“Generally excessive oil costs can develop into a self fulfilling prophecy when it comes to leading to assembly of rapid and quick time period wants,” Puri stated, elaborating that in world roiled by financial pressures, stimulus packages drive up inflation.

That stated, there’s additionally adequate oil provide on this planet, the Indian oil minister stated.

“There may be sufficient oil obtainable on this planet. What you have to be actually worrying about is whether or not the buyer could have the sources or the cash to pay for it,” Puri famous, highlighting that is the “actual downside” that many nations face.

In an August report, the Worldwide Power Company forecast international oil demand will hit record-highs.

“World oil demand is scaling file highs, boosted by sturdy summer season air journey, elevated oil use in energy technology and surging Chinese language petrochemical exercise,” the company stated.

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