Reviewing global oil scenario daily, have enough stocks - Oil Minister Puri
This story was originally published at 14:07 IST on 16 June 2025
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--Oil minister on Israel-Iran conflict: Reviewing global oil scenario daily
--Oil minister on Israel-Iran conflict: We have enough crude oil stock
NEW DELHI – The government is reviewing the evolving global situation on a daily basis amidst ongoing geopolitical conflicts, including the most recent tensions between Israel and Iran, Minister of Petroleum and Natural Gas Hardeep Singh Puri said Monday. Abating fears of oil shortage, Puri said that India has enough crude oil stocks. "Our own production is also increasing," he said, while speaking at an event marking 11 years of the National Democratic Alliance government.
Israel struck Iranian nuclear bases early Friday as part of "Operation Rising Lion" to stop it from developing nuclear weapons. Iranian media reported multiple explosions in the country, including at the biggest nuclear enrichment facility in Nantaz. Israel has since declared an emergency in anticipation of retaliation by Iran.
Following Friday's attack, crude oil prices surged over 13% to $78.50 per barrel, the highest level since Jan. 27, due to worries about a potential disruption in supply of crude oil as the conflict intensified. Iran holds over 9% of the world's crude oil reserves and currently produces over 3% of the world's crude oil output.
Several analysts now fear a new conflict will surface in West Asia and lead to uncertainty at a time when the war between Russia and Ukraine appears to be cooling off and the dispute on US tariffs seems to be getting resolved. At 1255 IST, the August contract of the Brent crude oil traded at $74.87 per barrel.
Besides price outlook, the recent escalation in tensiosn between Israel and Iran poses a huge logistics-related supply risk as the latter is reportedly considering closing the Straight of Hormuz. Hormuz is the only marine entryway into the Persian Gulf. It splits Iran on one side and Oman and the United Arab Emirates on the other, and it links the Persian Gulf to the Gulf of Oman and the Arabian Sea in the Indian Ocean.
Against the backdrop of these apprehensions, a senior oil ministry official Monday said that Strait of Hormuz would not be not closed. "I think it is not in anybody's interest (to close the Strait) as 22% energy goes through it," the top official said.
According to the US Energy Information and Administration, the Strait of Hormuz is the world's most important oil chokepoint because large volumes of oil flow through it. "In 2022, its oil flow averaged 21 million barrels per day or the equivalent of about 21% of global petroleum liquids consumption," it said. "Flows through the Strait of Hormuz in 2022 and the first half of 2023 made up more than one-quarter of total global seaborne traded oil," the agency said. End
US$1 = INR 86.01
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Kuldeep Singh and Priyasmita Dutta
Edited by Tanima Banerjee
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