No shortage of crude but difficult to predict prices because of geo-political crisis: Hardeep Puri

However, the Union Minister hoped that the fuel prices would largely be stable, adding that there is no shortage of crude oil in the market.

Union Minister Puri said, "No one can say with any certainty where the fuel prices would go because there are several global tension points. Especially the Middle East tension point, there is a calibrated tension point. All the parties involved in this will see reason and they will make sure that there is no escalation beyond a point. If my assessment is correct then fuel prices will remain stable...There is no shortage of crude oil in the world..."

"The most important point to note is there is no shortage of crude oil in the world. Brazil produces 3.3 million barrels a day. They are going to bring another 400 thousand barrels a day additional on the market. There is widespread expectation that the United States, which had paused some time ago on new contracts, they are going to be adding another one million barrels a day to their 13 million barrels new. More oil is coming on the market from Guyana, Suriname, and several other countries, so there's no shortage of oil. Now if there's no shortage of oil, it stands to reason that prices should not go up," the Union Minister added.

The Minister's comment comes after oil prices tumbled around 6 per cent on Monday after Israel attacked Iran. The continued War in the Middle East is heavily affecting the crude fuel prices in the international market.

The Brent oil price on Monday was trading at USD 71.63 per barrel, up 0.21 points or 0.29 per cent. In the last week, the benchmark gained about 4 per cent in the international market, affected by factors such as uncertainty over the US Presidential election and war conditions.

The Union Minister last week anticipated that prices would come down soon, answering the question of the recent upswing in crude oil prices.

Speaking to the media, the Union Minister cited global factors such as the war in the Middle East and voluntary cuts in oil production which are influencing the oil prices in the global market.

The Union Minister said many countries such as Brazil, and Guyana among others are coming with their oil. Citing the stable prices in the last 3 years, the minister said that the government is taking every possible step to ensure stable oil prices.

Earlier this month, Puri had said that the country is well-prepared to meet its growing energy demands, with a diverse range of oil sources. Speaking on the availability of oil in the global market, Puri emphasised that India has expanded its procurement base, moving from 27 suppliers to 39. (ANI)