Russian Oil Ban May Send Prices Soaring, says Hardeep Singh Puri

India’s Oil Minister Hardeep Singh Puri cautioned that global crude prices could surge to $130–$140 per barrel if Russian oil is removed from the market.

Despite the risks, Puri expressed confidence in India’s ability to adapt quickly by sourcing oil from alternative suppliers. He also outlined new government-backed efforts to strengthen India’s domestic energy sector, as per news reports.

Global Oil Shock Looms if Russian Supply Is Halted

Speaking at an industry event, Minister Puri explained that Russia contributes about 9 million barrels per day roughly 10% of global oil production. Cutting this volume would create a serious imbalance.

He outlined two grim possibilities: either the world cuts consumption drastically, affecting everyday life from heating to aviation, or it turns to the remaining producers, triggering a steep price hike. “The prices would skyrocket,” he warned.

India Not Worried About Trump’s Threats

Puri also dismissed former US President Donald Trump’s warning about secondary tariffs on countries trading with Russia. Trump had suggested a 100% tariff if Russia fails to strike a peace deal within 50 days.

India Will Quickly Pivot to Alternative Sources

Highlighting India’s resilience, Puri said the country would promptly find other sources to fulfill its energy needs if Russian oil became unavailable. He also pointed out that the global market is currently well-supplied, helping to keep oil prices stable in the short term.

In fact, he predicted prices would hover around $65 per barrel in the coming months due to this surplus.

Boosting Domestic Exploration with Global Partners

To reduce long-term dependency on imports, India is ramping up domestic oil exploration. State-run ONGC has signed a preliminary agreement with UK-based BP to drill new stratigraphic wells in four offshore basins.

The Indian government will fund this initiative, while BP will provide technical support. These efforts aim to deepen geological knowledge and unlock new reserves.

Read More: India Prepares for Oil Supply Shocks with New Emergency Reserves.

Conclusion

While the possibility of a Russian oil supply disruption presents a clear risk to global markets, India appears to be positioning itself with a pragmatic and prepared approach. From securing alternative sources to investing in domestic exploration with international partners, the country is aiming to cushion any potential shocks. As the geopolitical situation evolves, how effectively these strategies play out will be key to maintaining stability in both energy supply and pricing.

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