New Delhi: Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, on Thursday highlighted the growing influence of geopolitical developments on global crude oil markets, warning that oil price volatility is no longer a temporary phenomenon but a structural feature of the energy system.
Speaking at a Curtain Raiser press conference for India Energy Week (IEW) 2026, Puri stressed that for a country like India, which imports about 90% of its crude oil, such instability poses sustained risks to macroeconomic stability, inflation management, and fiscal planning.
Global Supply Adequate, Prices Driven by Geopolitics
Puri noted that while global crude supply remains adequate, prices continue to react sharply to geopolitical shocks, sanctions, and unilateral policy measures, particularly from major economies such as the United States.
“When even minor geopolitical developments occur, they now trigger disproportionate reactions in oil prices,” the Minister said, underscoring the structural nature of volatility in today’s energy markets.
On questions regarding additional crude supply from sanctioned producers like Venezuela and Iran, Puri remarked:
“Will more energy from Venezuela and Iran come on the market? I really don’t know. But I don’t see prices going down purely on that basis.”
He added that incremental supplies are increasingly coming from the western hemisphere, including Brazil, Guyana, Suriname, Canada, and the United States, which is helping to stabilize the global supply landscape.
Russia Imports and Diversification Strategy
Addressing India’s declining crude imports from Russia amid reported US pressure, Puri stated that strategic sourcing considerations are not discussed publicly.
“I am not going into geopolitical strategy. Nations do not discuss their strategies during press briefings,” he said.
He reassured that India faces no shortfall in oil supplies, noting that rising domestic consumption is being matched through diversified sourcing.
“As consumption increases, we are continuously expanding our import basket and exploring new sources,” the Minister added.
Domestic Exploration and Price Resilience
Puri highlighted the government’s Samudra Manthan initiative, aimed at enhancing domestic offshore and deep-sea oil production.
“We are drilling a number of wells each year, and through this initiative, we will multiply them,” he said, emphasizing that greater domestic output can improve long-term price resilience.
He warned that traditional assumptions about price correction through supply-demand balance no longer hold in a world shaped by sanctions, export controls, and trade restrictions.
“Geopolitics today has a disproportionate influence on energy markets,” Puri noted.
Energy Security Beyond Crude Oil
The Minister stressed that India’s energy security strategy extends beyond hydrocarbons, including critical minerals essential for the clean energy transition, such as lithium, cobalt, and nickel.
He highlighted India’s deep-sea exploration mission under Samudra Manthan, which aims to access polymetallic nodules in the Central Indian Ocean Basin. These rights, granted by the International Seabed Authority, position India among a select group of nations with long-term resource security ambitions.
“Energy security in the future will depend as much on minerals as it does on hydrocarbons today,” Puri said, emphasizing that environmental safeguards will remain central to India’s approach.
India Energy Week 2026
India Energy Week 2026, scheduled from 27–30 January 2026 at ONGC ATI, Goa, is expected to be the largest edition so far, with over 75,000 delegates, 600 exhibitors, and participation from energy ministers, policymakers, and industry leaders worldwide.
Describing IEW as the first major global energy event of the year, Puri said the platform would focus on:
- Strengthening energy security
- Catalyzing investment
- Advancing practical decarbonization pathways
“As oil prices remain exposed to geopolitical pressures, India’s challenge is to manage immediate import dependence while building long-term strategic autonomy,” the Minister said.
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