Amid geopolitical tensions in the world, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said on Tuesday that there is no shortage of crude oil in the world. India also has sufficient refinery capacity to meet its domestic needs. According to Bhasha news, Puri said regarding the ongoing tension in West Asia that his personal and personal assessment is that things will soon become normal in the world. It is in everyone's best interest not to allow things to escalate as this will affect everyone.
The total volume before the stress was 105 million barrels per day
According to the news, Puri said that before all these activities, the total amount of crude oil produced in the world was around 105 million barrels per day. The Organization of Oil Exporting Countries and its allied countries (OPEC Plus) have voluntarily reduced the oil production by about 5 million barrels per day. He said that if you talk to them, they will say that it is not their job to deal with prices. But as soon as you limit the quantity coming into the market you are obviously affecting the prices.
Volume reduced to 9.7 crore barrels due to production cut
The Union Minister said that due to production cuts the quantity has come down to 9.7 crore barrels. He said that if there is tension in a particular area, what effect will it have on oil. This increases the cost of freight, increases the cost of insurance. He said how do you calculate oil prices? In the international price of crude oil you add insurance cost, freight cost, refinery margin and dealer's margin. Puri said that our country still has one of the lowest prices of petrol and diesel in the world. The reason behind this is also the reduction in central excise duty by the government in November, 2021 and May, 2022.
Despite all the tensions including Iran and Israel war, today oil prices should be around $72-73 per barrel. The market is keeping these things in mind. Puri said that new oil is coming in the market. Brazil is getting 4,00,000 barrels of additional oil every day. America can bring more oil to the market.
Image Credit: India_Tv.