India's Strategic Russian Oil Purchases Crucial for Global Energy Stability
India's continued import of Russian crude oil has played a crucial role in maintaining global energy price stability, according to Petroleum Minister Hardeep Puri. Despite Western sanctions, India's purchases bolstered the global market, avoiding a potential surge in prices to over $120-130 per barrel.
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Petroleum and Natural Gas Minister Hardeep Puri asserted that India's ongoing crude oil imports from Russia have been instrumental in stabilizing global energy prices. During a press interaction, Puri emphasized that halting purchases could have triggered a spike in crude prices, reaching $120-130 per barrel. He highlighted Russia's significant production capacity of over 9 million barrels daily.
Minister Puri explained that with global oil supplies at approximately 97 million barrels, withdrawing Russia's 9 million barrels would have necessitated a nearly 10% reduction in global consumption, an impractical scenario. Such a reduction would have led to chaotic hikes in global oil prices as consumers competed fiercely for limited supplies.
Despite the geopolitical tensions post the Russia-Ukraine conflict, India continued its imports, asserting that Russian oil was never subject to global sanctions, only price caps. Puri praised India's prudent energy policies, which have ensured energy security and affordability, especially under Prime Minister Modi's leadership.
(With inputs from agencies.)
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