‘Difficult to speculate...’: What Hardeep Singh Puri said on oil prices, supply amid Hormuz Strait closure tensions

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri discussed the unpredictability of oil prices amid Strait of Hormuz closure tensions due to the escalating tensions between Israel and Iran.

Speaking to ANI, Minister Hardeep Singh Puri said, "...It's very difficult to speculate on the price factor. The oil price for a long time was between 65 and 70. Then it was between 70 and 75...When the markets open on Monday, the consequences of the closure of the Strait of Hormuz will be factored in.

‘Enough oil is available,’ says Puri

Despite the ongoing conflict, he emphasised the availability of sufficient oil in global markets, particularly from the Western Hemisphere.

He added, “But as I've been saying for a long time, enough oil is available in the global markets. More and more oil is coming on the global markets, particularly from the Western Hemisphere. Even traditional suppliers would be interested in keeping the supplies because they also need revenue. So hopefully the market will factor that in.”

Israel-Iran conflict

While reflecting on the rising tensions between Israel and Iran, the Union Minister stated that the current tensions were expected.

“...Insofar as the global situation today is concerned, the escalation of tensions in the Middle East was not entirely unexpected. We had foreshadowed this. The government, under the PM, has been consistently reviewing the situation,” Puri said.

Diversified supply sources

Assuring adequate oil supply for India, he further explained how the government has diversified its sources.

“We had diversified the sources of supply. Out of the 5.5 million barrels of crude oil that India consumes daily, about 1.5-2 million come through the Straits of Hormuz. We import roughly 4 million barrels through other routes. Our oil marketing companies have enough stocks. Most of them have stocks up to three weeks. One of them has 25 days' stock. We can increase the supply of crude through other routes. We are in touch with all possible actors,” Puri said.

Hardeep Singh Puri further highlighted that the government is monitoring the situation closely, with the PM engaging in discussions with key leaders, including Iran's President, for de-escalation.

“I believe that there is no cause for any alarm on this score. We will be watching the unfolding situation, and the PM has already spoken with all the major leaders. He's had a long conversation with the President of Iran calling for de-escalation. It is our hope, and we all expect that the situation will result in calm and de-escalation rather than further escalation,” he said.