New Delhi [India], October 22 : Hardeep Singh Puri, Minister for Petroleum and Natural Gas on Tuesday said that there is no shortage of oil in the world and prices will come down soon, answering the question of the recent upswing in crude oil prices.
Speaking to the media, the Union Minister cited global factors such as the war in the Middle East and voluntary cuts in oil production which are influencing the oil prices in the global market.
He said, "It depends on global factors. One thing is very clear, there is no shortage of oil in the world...Today, more and more oil is coming on the market...There are other factors like geopolitical tensions. So, there is no shortage of oil but if there is tension in one part of the world, then the freight cost, and insurance freight cost will go up. Today, let us all hope that better sense prevails, that call for peace that our Prime Minister has been making from every forum...There is more than enough oil in the world and prices should hopefully come down. That's my expectation..."
"If there's tension in one part of the world, then the cost of, if you have to take a longer route, then the cost of the freight cost, the insurance rate cost, that will go up...There's more than enough oil in the world, and prices should hopefully come down," he commented in his personal capacity.
The union minister said many countries such as Brazil, and Guayana among others are coming with their oil. Citing the stable prices in the last 3 years, the minister said that the government is taking every possible step to ensure stable oil prices.
"Central government at every stage has stepped in to cushion and bring the prices down from November 2021 to May 2022. Now there are some global factors. The cost at the retail point is determined by the cost of the barrel in the international market plus the cost of transportation, freight, insurance, retailers, refining cost and margin, then dealers, margin, etc. We are solving all the problems we can, now you tell the global community to hold and bring them down," he added.
This comes after oil prices rose nearly 2 per cent on Monday, reclaiming major losses from last week's sell-off. Brent crude features upped by $1.44, or 1.97 per cent in the afternoon.
Earlier this month, Puri had said that the country is well-prepared to meet its growing energy demands, with a diverse range of oil sources.
Speaking on the availability of oil in the global market, Puri emphasised that India has expanded its procurement base, moving from 27 suppliers to 39.
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