Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, has said that there is no shortage of oil in the world and, therefore, he expects prices to come down once global geopolitical issues are resolved.
Speaking to the media, the minister highlighted the fact that more oil production was coming online across the world. He said, "One thing is very clear, there is no shortage of oil in the world. Today, more and more oil is coming onto the market."
However, he also discussed the factors keeping crude oil prices elevated and said, "There are other factors, like geopolitical tensions. So, there is no shortage of oil, but if there is tension in one part of the world, then the freight cost, including insurance, will go up."
The Petroleum Minister also expressed hope that these issues would eventually settle and that oil prices would come down.
He said, "Today, let us all hope that better sense prevails, that the call for peace that our Prime Minister has been making from every forum... There is more than enough oil in the world, and prices should hopefully come down. That's my expectation".
During the last week, the Brent and WTI crude prices had dropped over 7%. However, on Monday both Brent and WTI gained almost 2% as fighting in the Middle East intensified. The crisis in the region has the market nervous about a potential disruption of oil supply.
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