How is India’s Energy Diplomacy Stabilizing Global Oil Markets?
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Synopsis
Explore how India's strategic energy diplomacy under Minister Hardeep Puri is reshaping global oil markets. By diversifying oil sources and engaging in smart diplomacy, India is not only securing its energy future but also playing a crucial role in stabilizing prices worldwide. Discover the implications of these actions on the global stage.
Key Takeaways
- India’s energy diplomacy enhances global oil market stability.
- Diversification of oil sources has increased from 27 to 40 countries.
- India contributes to 16% of global oil demand growth.
- Projections indicate India will drive 25% of global energy demand growth in the next two decades.
- Smart energy strategies help avoid price shocks exceeding $130 per barrel.
New Delhi, July 18 (NationPress) Minister of Petroleum and Natural Gas Hardeep Singh Puri stated on Friday that India's energy diplomacy is not only securing the nation’s future but also playing a pivotal role in stabilizing the global energy markets.
In a recent post on X, he noted that India has increased its oil sourcing from 27 to 40 countries, and the country’s “smart energy diplomacy - including purchasing from Russia - has helped avert oil price shocks exceeding $130 per barrel” in the international market.
Puri emphasized that India accounted for 16 percent of the global oil demand growth over the past decade.
As per the IEA, India is projected to drive 25 percent of global energy demand growth in the next two decades, he added.
The minister pointed out that Russia is among the largest crude oil producers, supplying over 9 million barrels per day, which constitutes roughly 10 percent of the global oil output of about 97 million barrels.
If this oil were to disappear from the market, consumers would be left scrambling for dwindling supplies, likely causing prices to soar beyond $130 per barrel.
“Under the leadership of Prime Minister Narendra Modi, India has positively contributed to global energy price stability while adeptly managing the challenges of energy availability, affordability, and sustainability,” Puri remarked.
The minister clarified that Russian oil was never subjected to global sanctions. “Rational decision-makers globally recognized the intricacies of oil supply chains and understood that India was merely assisting global markets by acquiring discounted oil under a price cap from various sources,” he stated.
Puri mentioned on Thursday that India has successfully diversified its oil purchasing channels globally, alleviating concerns regarding any potential US restrictions on Russian oil exports.
During his address at Urja Varta 2025, he remarked, “There is an abundance of oil available in the market. While Iran and Venezuela are currently facing sanctions, will they remain sanctioned indefinitely? Many nations, including Brazil and Canada, are increasing their production. Currently, I am not overly concerned about supply issues. We have diversified our sources.”
The minister’s comments came following US President Donald Trump's announcement regarding secondary sanctions that would target nations procuring Russian oil.
Point of View
India's approach to energy diplomacy, particularly under Minister Hardeep Puri, reflects a keen understanding of global dynamics. The diversification of oil sources not only secures India's future energy needs but also contributes positively to global market stability. This proactive stance showcases India's commitment to balancing national interests with global responsibilities.
NationPress
05/09/2025
Frequently Asked Questions
What role does India play in the global oil market?
India plays a significant role in the global oil market by increasing its sourcing from various countries and contributing to global oil demand growth.
How has India's energy diplomacy affected oil prices?
India's energy diplomacy has helped stabilize oil prices, avoiding drastic spikes by diversifying its oil procurement strategies.
What are the future projections for India's energy demand?
According to the IEA, India is expected to drive 25% of global energy demand growth over the next 20 years.
Why is Russian oil significant to India?
Russian oil is crucial due to its large production capacity, which significantly influences global oil supply and pricing.
How does India respond to US sanctions on Russian oil?
India has diversified its oil sources and remains confident in its supply chains despite US sanctions, ensuring energy security.
