India’s decision to purchase Russian oil during a time of global economic instability helped prevent a sharp increase in global oil prices, according to Union Petroleum and Natural Gas Minister Hardeep Singh Puri.
At the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) on Thursday, Puri stated that without India’s purchase of Russian oil, global oil prices could have skyrocketed to $200 per barrel.
Puri predicted that by 2026, when more energy becomes available on the market, the chances of oil prices stabilizing or even decreasing are high.
Regarding India’s recent decision to cut Russian oil imports by 10% in October, Puri explained that this was due to competitive pricing in the global oil market. “Other suppliers are offering competitive rates, and OPEC‘s position doesn’t involve price negotiations,” he said. “There’s healthy competition in the market, and if one source is unavailable, there are always alternatives.”
When asked if the reduction in Russian oil imports was a strategic move, Puri clarified that India’s earlier decision to buy Russian oil had helped prevent a surge in prices. He explained that when Russia suddenly made 13 million barrels of oil available in February, had India stopped purchasing and turned to Gulf suppliers, global oil prices could have spiked to $200 per barrel. “I believe we did everyone a favor,” he added.
In a post on X (formerly Twitter), Puri reinforced that India’s purchase of Russian oil benefited the global market. He pointed out that Russian oil was never formally sanctioned, only subject to a price cap, which Indian companies adhered to. “India did the entire world a favor by buying Russian oil because if we hadn’t, global oil prices would have soared to $200 per barrel,” Puri stated.
Responding to critics who sought to restrict India’s oil imports, Puri defended the country’s stance. “Some misguided commentators have called for restricting India, but many European and Asian countries have also purchased large amounts of crude oil, diesel, LNG, and rare earth minerals from Russia,” he said. “We will continue to buy energy from whoever offers the best rates.”
Puri emphasized that India’s main priority remains ensuring a steady, affordable, and sustainable energy supply for its citizens. “We must prioritize these needs for our 700 million citizens who rely on petrol pumps every day,” he said. He also highlighted India’s success in reducing fuel prices over the past three years, in contrast to rising energy costs in other countries.
Related Topics:
- Oil Industry CEOs Express Concerns About Geopolitical Tensions
- Oil Prices Rise Due to Gulf of Mexico Storm Ahead of US Election Results
- WTI Falls to Around $71.50 Due to Strong US Dollar