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Oil Minister warns West Asia crisis may deepen, cites ample global crude and foreign interest in Indian refineries
Reported by Neha Sharma (Staff Writer) · The Hindu - Business ·
Confirmed by a second source: Business Standard - Top Stories
Representative image · Wikimedia CommonsCrisis
Union Oil Minister Hardeep Singh Puri warned on Thursday that the West Asia crisis is still ongoing and could become more serious. He said the situation is not over and has the potential to exacerbate.
Market Outlook
Speaking at the Public Affairs Forum of India’s annual conclave, Puri highlighted a silver lining: global crude oil supply remains higher than demand, with about 102 million barrels per day available worldwide while India’s domestic need is roughly 94‑95 million barrels per day. He ruled out any restriction on oil exports despite tighter market conditions and added that a return to stability would help keep crude prices low, hoping peace will bring lower oil prices.
Investment
When asked about foreign capital for refinery expansion, Puri said India does not need it but overseas investors are keen to come in, seeking a slice of the growing downstream market. He noted that building a new refinery in India costs between ₹78,000 crore and ₹80,000 crore. The minister emphasized that these factors together shape India’s oil outlook amid regional turmoil.
ExplainerWhy this matters
What Happened
The West Asia conflict continues and, according to Union Oil Minister Hardeep Singh Puri, could worsen, prompting concerns for the global oil market.
Why It Matters
The crisis affects oil supply routes and price stability. Puri pointed out that despite the tension, the world market still holds roughly 102 million barrels per day of crude, enough to meet India's need of about 94‑95 million barrels per day, which helps avoid immediate shortages. However, any escalation could tighten supplies and push prices up, impacting fuel costs for Indian consumers and businesses. Foreign investors eyeing Indian refineries see a chance to tap a growing downstream market, but their involvement depends on market stability and policy clarity.
What Happens Next
If the West Asia situation escalates, oil prices may rise and India could face pressure to reconsider export policies. The government will likely monitor the crisis closely while keeping refinery expansion plans on track, watching for any shift in foreign investment interest. The exact impact remains uncertain, hinging on how quickly diplomatic efforts bring peace to the region.
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