Will navigate through supply shock: Oil minister on price rise

India will be able to navigate through any oil supply shock that may result from the potential widening of the conflict in West Asia, Oil Minister Hardeep Singh Puri said on Tuesday. International oil prices have flared to about $79 per barrel from about $70 per barrel in just over a week’s time, as the market waited to see if Israel would retaliate against Iran for the October 1 missile attack.

“There is no cause for panic,” Puri said. “More than enough oil is available in the world.” While India, the world’s third largest oil importing and consuming nation, is more than 85 per cent dependent on imports to meet its crude oil needs, the situation is “manageable”, he said.

“There is no need for concern,” he said. “We are pretty confident we will be able to navigate as we had done in the past.” This is primarily because the market is awash with oil supplies and if some parties hold back production or there are supply issues, there are new suppliers in the market to fill in the void.

“More than enough oil is coming into the market,” he said at the FT’s Energy Transition Summit India.

It is being speculated that Israel may target oil or nuclear facilities in Iran, and Tehran can choose to respond with either a direct attack on Israel or shutting the Strait of Hormuz. A fifth of global oil flows through the Strait.