Surge In Oil Prices To Impact Global Economic Recovery, Says Union Minister Puri

The minister further said that India is keeping a close eye on the Israel-Hamas military conflict, which hasn’t affected supply lines till now.

The Minister said the oil industry faced challenges on multiple fronts, such as increasing population, dampening resources, environmental degradation, and surging food and energy prices.

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Increased oil prices will impact global economic recovery, India’s Oil Minister Hardeep Singh Puri said on Wednesday. The minister stated that India remained confident that it would be able to navigate through the current geopolitical crisis. Notably, India is the world's third-biggest oil consumer. 

The minister further said that India is keeping a close eye on the Israel-Hamas military conflict, which hasn’t affected supply lines till now. He added that if crude prices increase, then it would leave a strong and adverse impact on global economic recovery, reported PTI. 

Notably, oil prices increased by more than $3 per barrel on Monday, after Israel and Palestinian Islamist group Hamas engaged in military clashes, but eventually closed lower as worries about potential supply disruptions eased. “I think global markets will factor in all things into account. If the supply lines are not disrupted, hopefully, we will be able to navigate through everything..Brent crude was trading at USD 87.18 per barrel. What we are doing is watching (the situation in the Middle East) on a real-time basis, and I am confident that we as India will navigate on availability and other factors,” Puri added while speaking at the 14th edition of KPMG’s Innovation and Energy Conclave. 

#WATCH | Delhi | On crude oil price change speculations amid Israel-Palestine conflict, Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri says, "...It stands to reason that if the crude oil prices go up, that has a very strong & adverse impact on the attempts at… pic.twitter.com/sHkqKcqLAo

— ANI (@ANI) October 11, 2023

Talking about the challenges in the energy sector, the minister said the industry faced challenges on multiple fronts, such as increasing population, dampening resources, environmental degradation, and surging food and energy prices. “The global energy trilemma challenge – security, affordability, and sustainability, needs a nuanced approach, especially taking the needs of the global south into consideration, he said. India's energy demand will continue to provide fuel for future economic growth, as it grows exponentially,” he noted. 

In addition to being the world's third-largest consumer of oil, the nation also stands as the third-largest LPG consumer, fourth largest LNG importer, fourth largest refiner, and fourth largest automobile market. India will contribute to 25 per cent of global energy demand growth over the next two decades, the minister stated.