India buying Russian oil keeps prices cheaper, says oil minister Puri

Hardeep Singh Puri, India’s minister of Petroleum and Natural Gas, at the ADIPEC conference in Abu Dhabi, United Arab Emirates, on Tuesday, Oct. 3, 2023.

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India keeps global crude prices affordable by buying oil from Russia, India’s energy minister said.

“The world is grateful to India for buying Russian oil. It’s not that they don’t want us to buy Russian oil,” India’s Minister of Petroleum and Natural Gas Hardeep Singh Puri told CNBC’s Sri Jegarajah on the sidelines of the India Energy Week conference in Goa.

“If we start buying more of the Middle Eastern oil, the oil price will not be at $75 or $76. It will be $150,” he added.

Since Russia’s invasion of Ukraine in February 2022, India’s refiners have been snapping up discounted Russian oil.

India's minister of petroleum claims the world is 'grateful' to India for buying Russian oil

Moscow has since become India’s leading source of crude oil, accounting for about 36% of the South Asian nation’s crude imports.

Consequently, India’s imports of Middle Eastern oil fell to a record low.

Oil prices have been under pressure in spite of rising tensions in the Red Sea and fears of a widening conflict in the Middle East. Such uncertainty would typically push energy prices higher but gains have been limited amid record output from the U.S., and an ongoing global economic slowdown.

The Indian minister said he was not “unduly worried” about whether there will be a spike in prices as a result of a lack of availability or affordability of the oil.

“The fact of the matter is half the work is in recession,” he said, adding that higher oil prices will invariably end up becoming a “self fulfilling prophecy” where higher prices will curtail demand.

Market impact of the Red Sea crisis has been 'surprisingly limited,' analyst says

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