Global Oil Prices Should Fall Soon: Hardeep Singh Puri – Commodity News

Oil and Natural Gas Minister Hardeep Singh Puri said on Tuesday that he expects international crude oil prices to come down and emphasized the fact that there is no shortage of oil in the world.

“I think (the price of oil) should come down. It depends on global factors. One thing that is very clear is that there is no shortage of oil in the world. Today, more and more oil is coming to the market,” Puri said .

Brent crude oil prices have followed a volatile trajectory since the conflict between Israel and Iran escalated. On Tuesday, Brent prices settled around $74.4 a barrel on concerns of weakening global demand.

He emphasized that countries such as Brazil and Guyana are bringing more crude to the market.

“Now, there are other factors such as geopolitical tensions. There is no shortage. But if there is tension in one part of the world and a longer route is required, the cost of freight, insurance, etc. will increase. There is more than enough oil in the world, and we expect prices to drop. That is my personal expectation,” he said.

Puri noted that the government has been able to successfully navigate such situations in the past and will continue to do so.

India recently stepped up efforts to expand crude oil purchases from Brazil amid escalating tensions in the Middle East. However, the abundant availability of discounted Russian crude and logistical hurdles could pose challenges to increasing purchases from the South American supplier, according to S&P Global Commodity Insights.

Puri recently visited Brazil to discuss how India could expand crude oil purchases from Brazil, as well as seek opportunities to collaborate on deep and ultra-deepwater exploration and production projects.

Brazilian crude oil exports to India have been reduced in recent months. Until 2024, India has imported crude from Brazil for just five months, with imports this year peaking at 41,600 barrels per day in April, data from S&P Global Commodities at Sea showed. In December 2023, Indian imports of Brazilian crude reached 143,000 bpd.