Global Oil Supply Routes Choke Point Driving Price Increases
Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said that global oil consumption is currently below available supply, with the world consuming 94 million barrels against 104 million barrels of available oil. The current challenge in the global energy market is not a shortage of oil but disruptions to supply routes.
Puri stated that there's no supply shortage in the world and that the world has 104 million barrels of oil a day. He mentioned that global oil consumption is currently below available supply, with the world consuming 94 million barrels against 104 million barrels of available oil.
The disruptions to supply routes have pushed up freight costs and energy prices, Puri said. He attributed the issue to several geopolitical developments affecting global energy markets, including the Russia-Ukraine conflict and the closure of the Red Sea route.