Crude oil price at USD 110/barrel is unsustainable, says Hardeep Singh Puri
Davos: India’s Oil Minister Hardeep Singh Puri told the World Economic Forum on Tuesday that the crude oil price of $110 a barrel was unsustainable, even as he courted world oil leaders to discuss markets energy worlds.
International oil prices have soared this year, hitting a nearly 14-year high of $140 a barrel in March, after Russia’s invasion of Ukraine heightened supply concerns. They have retreated but continue to be above USD 110 – a rate that is fueling inflation and impacting economic recovery in many parts of the world.
“Don’t believe that the world today is facing an energy shortage. We are faced with a situation where the quantities of energy released on the world market are lower than the demand. That’s what’s causing the inflationary problem,” Puri said, alluding to the OPEC+ oil producer cartel’s production restrictions.
The world is facing an energy price crisis which is contributing to rising global inflation.
“There is no doubt that the current global energy crisis is a ‘management crisis’, and the same can be quietly reversed if major suppliers decide to release the extra amount of oil they are holding back,” he said. he declares.
On the sidelines of the WEF, he met Amin H Naseer, Chairman and CEO of Saudi Aramco, the world’s largest oil producer.
“A broad discussion on energy markets as well as bilateral cooperation” took place with Nasser, Puri tweeted along with a photo of the meeting.
He also met with OPEC Secretary General Mohd Sansui Barkindo and International Energy Agency Executive Director Fatih Birol.
India is 85% dependent on imports to meet its oil needs and any spike in world prices has a direct impact on the economy. In addition to driving up the prices of petrol, diesel and cooking gas (which are produced from crude oil), it has an indirect inflationary impact as the cost of transporting all goods and services increases .
Oil prices and some local factors pushed the inflation rate to a record high in April. This prompted the government to cut excise duties last week on petrol and diesel to cool prices.
India has pleaded with OPEC and its allies, called OPEC+, not to artificially control production and allow it to meet demand. OPEC+, however, has so far ignored those pleas and continued to embrace a calibrated increase in production.
“Very happy to meet my friend @HardeepSPuri, India’s Minister of Petroleum and Natural Gas, in Davos to discuss the state of the global energy markets and how to tackle the current challenges. Grateful for the Minister’s support Puri in strengthening IEA-India relations,” Birol tweeted.
Puri also met his Indonesian counterpart.
“We discussed energy market issues and ways to strengthen our bilateral cooperation in a productive meeting with the Indonesian Minister of Energy and Mineral Resources, Mr. Arifin Tasrif,” he said. he tweeted.
Puri said India will drive energy demand and growth in the global economy over the next 2-3 decades and high oil prices will accelerate the transition to alternative fuels.