India's Strategic Oil Purchases from Russia Stabilized Global Prices, Says Petroleum Minister
Abu Dhabi, October 5, 2023 - At the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Union Petroleum and Natural Gas Minister Hardeep Singh Puri articulated the significant impact of India's decision to purchase Russian oil amidst global economic turbulence. He stated that without these purchases, the world might have seen oil prices soar to $200 per barrel.
During his address, Minister Puri emphasized, "If the Indian government hadn’t bought Russian oil, the global oil price would have escalated dramatically, affecting everyone." He projected that by 2026, with an increase in available energy, prices are likely to stabilize or even decrease.
Puri also discussed the recent 10% reduction in India's imports of Russian oil in October, attributing it to competitive pricing dynamics in the global oil market. "There are other suppliers offering competitive rates, and the OPEC position doesn’t involve price negotiations," he explained, highlighting the natural ebb and flow of market competition.
Addressing speculations about strategic shifts in oil sourcing, Puri clarified, "When we faced February 22, there were 13 million barrels of Russian oil suddenly available. If India had stopped purchasing and shifted to Gulf suppliers, global oil prices would have surged to $200 per barrel." He defended India's strategy, suggesting it had done "everybody a favor" by mitigating potential price spikes.
In his social media posts, Puri reiterated the benefits of India's approach, noting that Russian oil was never under formal sanctions but was subject to a price cap which Indian companies respected. He countered critics by pointing out that many European and Asian countries have similarly engaged in substantial trade with Russia for oil and other commodities.
"India will continue to buy energy from whoever offers the best rates to our oil companies," Puri affirmed, emphasizing the country's commitment to securing affordable and sustainable energy for its citizens. He highlighted India's notable reduction in fuel prices over the past three years, contrasting this with rising energy costs in other parts of the world.
Minister Puri's statements come at a time when global energy security and economic stability are under intense scrutiny, showcasing India's pragmatic approach to navigating the complex international oil market.