Commodities
Supply Route Disruptions Drive Up Oil Prices: Indian Oil Minister
India's Minister of Petroleum and Natural Gas Hardeep Singh Puri emphasized that there is no global supply shortage of crude oil, attributing higher prices to disruptions in supply routes.
Puri explained that while global oil consumption currently stands at around 94 million barrels a day, the available supply is 104 million barrels per day. He noted that supply routes are being choked and freight charges are high, leading to higher prices.
The minister highlighted that India has successfully navigated disruptions in crude oil and natural gas supplies amid the ongoing West Asia crisis and Strait of Hormuz disruptions, thanks to its diversified energy sources, which have increased from 27 to 41 since 2022.