Petroleum and natural gas minister Hardeep Singh Puri on Tuesday said that he expects international crude oil prices to come down emphasizing on the fact that there is no shortage of the oil in the world.
“I think it (oil prices) should come down. It depends on global factors. One thing that is very clear is there is no shortage of oil in the world. Today, more and more oil is coming into the market,” Puri said.
Brent crude oil prices have been following a volatile trajectory ever since the conflict between Israel and Iran escalated. On Tuesday, Brent prices hovered around $74.4 per barrel on concerns weakening global demand.
He highlighted that countries such as Brazil and Guyana are bringing more crude to the market.
“Now, there are other factors like geopolitical tensions. There is no shortage. But if there is tension in one part of the world and if you have to take a longer route, then the cost of freight, insurance, etc., will go up. There is more than enough oil in the world, and prices should hopefully come down. That is my personal expectation,” he said.
Puri noted that the government has been successfully able to navigate through such situations in the past and will continue to do so.
India, recently, intensified efforts to expand crude oil purchases from Brazil amid escalating Middle East tensions. However, plentiful availability of discounted Russian crude and logistical hurdles could pose challenges in boosting purchases from the South American supplier according to S&P Global Commodity Insights.
Puri recently visited Brazil to discuss how India could expand crude oil purchases from Brazil, as well as look for opportunities to collaborate on offshore deep and ultra-deepwater exploration and production projects.
Brazilian exports of crude to India have been subdued in recent months. So far in 2024, India has imported crude from Brazil during just five months, with imports this year peaking at 41,600 barrels per day in April, data from S&P Global Commodities at Sea showed. In December 2023, Indian imports of Brazilian crude were as high as 143,000 bpd.