Indian Oil Minister Hardeep Singh Puri said on Monday that New Delhi will be able to deal with any damage to oil supplies from the potential expansion of the scope of the conflict in the Middle East.
India, the third largest importer and consumer of oil in the world, imports about 85% of its crude needs, which exceed 5 million barrels per day. It obtains a large portion of these supplies from producers in the Middle East.
Global oil prices rose due to fears of the expansion of the Middle East conflict and a possible interruption of supplies from major oil producers, with the price of Brent crude approaching $80 per barrel.
“We are monitoring the situation very carefully. Energy availability could be affected if (the crisis in the Middle East) worsens,” Puri said at an event organized by ExxonMobil to launch its global energy forecast for 2024.
He added that India would, however, be able to handle the situation in light of abundant supplies in the market.
He said, “Currently, the supply of oil in the world exceeds consumption. If some parties stop pumping supplies, there are new suppliers in the market as well.”
The OPEC Plus alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, has reduced oil production in the past few years to support prices due to weak global demand.
The group is scheduled to raise production starting next December.
