In the face of escalating military clashes between Israel and the Palestinian group Hamas, India, the world’s third-largest oil importer, is keeping a vigilant eye on the unfolding conflict. Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, highlighted India’s close monitoring of the situation, acknowledging the global repercussions on crude oil prices.
The ongoing conflict has triggered a spike in global crude oil prices, surging by over $3 per barrel. This surge is a direct consequence of the rising political uncertainty in the Middle East, leading to concerns about oil supplies worldwide. Speaking at an industry event in New Delhi, Minister Puri emphasized the strategic importance of the region where the conflict is transpiring, describing it as a central hub of global energy.
“The place where action is taking place is in many respects the centre of global energy… as we go along, we will navigate through this,” Puri reassured, highlighting India’s resilience in handling the evolving situation.
Puri also underscored how global uncertainties of this nature often push nations toward the adoption of sustainable, cleaner fuels. Additionally, he expressed concerns about the sustainability of crude oil prices hitting $100 per barrel, emphasizing their adverse impact on inflation and the growth prospects of major importers like India.
In a proactive stance, Puri had previously urged oil-producing nations to exhibit sensitivity toward consuming countries. This call for consideration comes as countries like India grapple with prices consistently trading above $90 per barrel, particularly following the decisions of oil-producing giants such as Saudi Arabia and Russia to extend voluntary production cuts through the end of the year.
India’s cautious monitoring and strategic approach reflect the nation’s commitment to managing the complexities of global energy dynamics while ensuring its energy security and economic stability. As the conflict unfolds, India stands resilient, prepared to navigate through the challenges and uncertainties that lie ahead.