New Delhi: India would welcome more oil and gas coming into the market, Union minister for petroleum and natural gas Hardeep Singh Puri said on Tuesday, naming the US under president Donald Trump as a likely source of increased fuel supplies.
Speaking to reporters in New Delhi, the minister said he does not "disagree" that oil prices could come down with oversupply.
“It is clear, as I have shared with you many times, that more and more energy is coming in the market. If you look at the global energy scene here is no shortage of oil. I had shared with you that after I came back from Gastech 2024 in Houston, at that point of time a former president of the US had said that they will put more energy on the market, irrespective of the outcome (of presidential elections). My assessment at that point of time was that America already produces around 13 million barrels per day (mb/d). They will at least put 1.4-1.5 mb/d additional in the market,” he said.
The minister was responding to questions on the outlook for the market under Trump's presidency. Among the first set of announcements made after taking office, Trump reiterated his campaign trail slogan “Drill, baby, drill” indicating his administration would scale up oil and gas production.
Trump has also announced plans to declare a "national energy emergency" to boost energy production.
India, which imports about 85% of its total energy requirements, has been eyeing more sources of cheap oil, particularly after the US slapped a fresh round of sanctions on Russian oil companies and vessels recently.
In the past three years Russia has emerged as the top supplier of crude to India as it has offered the commodity at discounted rates to get around western sanctions. Although discounts have declined significantly from about $30 per barrel in 2022 to about $2.5-4 per barrel now, Russian crude comprises about 38% of India's total imports.
So far in this fiscal, the US is the fifth largest supplier of oil to India, accounting for 4.3% of crude imports.
"If you ask me if more American energy will come to the Indian market, I will say yes. If you say there is more potential of purchase of energy between India and the US, the answer is yes,” Puri said on the sidelines of the Bharat Mobility Global Expo.
He said more oil would come into the market from Brazil, Guyana, Surinam and Canada.
“What it means is how much oil has been available in the market. I have said that that I see crude oil prices reacting to that availability. Secondly, the (Trump) inauguration has just taken place. Some decisions have been taken. Let them come in. Some of these decision had been anticipated.”
Puri underscored that India has increased its crude oil and gas sources from 27 to 39 countries.
Although globally oil demand growth is slowing, India continues to be a major demand hub with demand growing every year and breaching record levels.
India's petroleum product demand continues to remain robust with consumption seen at a record 252.9 million tonnes for the next financial year (FY26), according to data from the Petroleum Planning and Analysis Cell. India's petroleum product may touch a record 252.9 million tonnes in FY26, 4.65% higher than the 241.8 million tonnes projected for this fiscal.
On the supply of natural gas, Puri said a lot of gas is available globally and industry players are willing to sign long-term contracts. He added that more gas is expected to come online in 2026-27, with new capacities in the US and Qatar.
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