Crude Prices Surge Amid Iran-US Peace Talks Uncertainty
Global crude oil prices surged on Monday due to renewed uncertainty over Iran-US peace talks. Brent crude rose as much as 3.6% to $108.10 a barrel before paring some gains, while West Texas Intermediate (WTI) crude was at $94.14, up 1.87%. The increased price sensitivity is attributed to the ongoing tensions in West Asia.
Iranian Foreign Minister Abbas Araghchi stated that his country is prepared for a 'doomsday war' after the Trump administration rejected Iran's proposal on the Strait of Hormuz. Meanwhile, Union Petroleum and Natural Gas Minister Hardeep Singh Puri expressed confidence in India's ability to navigate disruptions to crude oil supplies.
Puri acknowledged that India has reduced its dependence on individual regions by expanding its crude sourcing network to 41 countries from 27 earlier. However, he identified LPG availability as his biggest concern, particularly with the significant increase in domestic LPG connections from 14 crore in 2014 to 33.5 crore.
The government is encouraging consumers to adopt alternative energy sources where possible and has increased LPG production to 54,000 metric tonnes a day from 34,000 metric tonnes.