Energy
Thursday, February 8th, 2024 4:21 pm EDT
Key Points
- India’s Minister of Petroleum, Hardeep Singh Puri, emphasizes India’s role in keeping global crude prices stable by purchasing discounted Russian oil, stating that the world appreciates India’s contributions in this regard.
- India’s reliance on Russian oil has increased significantly since Russia’s invasion of Ukraine in February 2022, with Moscow becoming India’s leading source of crude, accounting for 36% of its crude imports, consequently reducing imports from the Middle East.
- Despite global tensions and fears of escalating conflicts in regions like the Red Sea and the Middle East, oil prices have remained relatively stable due to factors such as record oil output from the U.S. and a global economic slowdown. India’s energy minister expresses confidence in India’s ability to manage potential oil price spikes, citing the country’s economic resilience and the dampening effect higher prices would have on demand.
India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, asserts that India’s significant purchase of Russian oil has helped keep global crude prices affordable. Speaking at the India Energy Week conference in Goa, Puri emphasized that India’s preference for Russian oil has contributed to stabilizing oil prices, preventing them from soaring to potentially detrimental levels. Following Russia’s invasion of Ukraine in February 2022, Indian refiners have increasingly turned to discounted Russian oil, making Moscow India’s primary source of crude, accounting for approximately 36% of the country’s crude imports, thereby reducing imports from the Middle East to record lows. Despite escalating tensions in the Red Sea and concerns over a broader conflict in the Middle East, oil prices have remained relatively stable due to factors such as record output from the U.S. and a global economic slowdown. Puri expressed confidence in India’s ability to handle potential spikes in oil prices, citing the nation’s resilient economy and the inevitable dampening effect higher prices would have on demand. Moreover, India’s growing demand for oil is projected to drive global oil demand growth from 2023 to 2030, according to the International Energy Agency. However, India’s ambitious renewable energy goals, including deriving 50% of electricity from renewable sources by 2030 and achieving 100% transition to renewable energy by 2050, pose challenges to its reliance on oil. Prime Minister Narendra Modi’s plan to significantly increase the country’s annual oil refining capacity by 80% to 450 million tons may complicate these renewable energy targets. Nonetheless, Puri expressed confidence in India’s ability to meet its renewable energy goals ahead of schedule, citing the commitment of major Indian oil companies to net-zero targets by 2035 and 2040.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/08/india-buying-russian-oil-keeps-prices-cheaper-says-oil-minister-puri.html
