Uncertainties in the oil market would lead to faster energy transition, said Minister of Petroleum and Natural Gas Hardeep Singh Puri as crude oil prices spiked amid geopolitical tensions in the Middle East.
The remarks by the oil minister come as crude oil prices spiked over 4.5 percent to $87 per barrel on October 9 triggered by the escalating geopolitical tensions.
Speaking on the sidelines of the Energy Technology Meet on October 9, Puri said, "Biofuels will immune the world from the uncertainties which have unfolded in the recent days." "Nothing will drive energy transition more than global turbulence," he further added.
Talking about India's stance on rising oil prices due to the Israel-Hamas crisis, Puri said that India will handle the issue carefully. "We will watch very carefully and as we go along, we will navigate our way through this issue," he noted.
Oil prices, which fell in the previous week due to demand concerns, witnessed a significant reversal again after Hamas launched a large-scale surprise attack on Israel on October 7.
Also Read | Oil prices surge after Hamas’ attack on Israel, here's what experts say on likely supply disruptions
Though Israel and Palestine are not significant oil-producing countries, reports of Iran's involvement in the attack by Hamas are raising concerns in the oil market. Oil production in Iran has recently gone up, according to media reports.
Puri, however, noted that the market has enough crude oil supply to sustain the current levels of oil consumption. He also pointed out that the oil cartel - Organisation of Petroleum Exporting Countries (OPEC ) - has the right to decide the amount of oil they want to sell in the market, but should ensure that oil prices do not cross a "threshold."
Last week, in an interaction with Bloomberg TV on October 4, Puri said that crude prices of around $80 per barrel or slightly less than that would be a convenient price range for countries.
In a bilateral discussion with OPEC Secretary General Haitham Al-Ghais on October 3, Puri had addressed crude production cuts by OPEC and the impact on the global energy sector. He also advocated for balancing global energy markets by ensuring that crude oil prices do not outstrip the paying ability of the consuming economies.
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