Commodities
No Global Oil Shortage: Supply Route Disruptions Drive Prices
Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said that the world is not facing an oil shortage, but rather disruptions to supply routes are driving up prices.
The global energy market has seen several key developments affecting supply routes. Puri pointed out that when the Russia-Ukraine conflict started, it caused a significant disruption in global energy markets.
He also mentioned that 40% of global energy moves through the Strait of Hormuz, which was closed due to another geopolitical development.
Puri stated that India has enough oil supply, with 104 million barrels per day available, but the disruptions have pushed up freight costs and energy prices.