NEW DELHI: Petroleum and Natural Gas Minister Hardeep Puri said India's continued purchase of crude oil from Russia helped stabilise energy prices globally, and halting oil trade from Russia would have spiralled crude prices to over USD 120-130 per barrel.
When asked about buying Russian oil during a press interaction, Minister Puri explained that Russia produces over 9 million barrels per day and is one of the world's largest crude oil producers.
If, out of global oil supplies of around 97 million barrels, 9 million barrels had suddenly vanished, the entire world would have had to reduce consumption by over 10 per cent, which is impossible, he said.
This chaos would have led to global oil prices spiralling to over USD 120-130 per barrel, as all consumers would have been competing for the reduced supplies.
"Imagine the chaos if this oil, amounting to about 10 per cent of the global oil supply of around 97 million, vanished from the market," he said, during his visit to Vienna.
According to him, "It would have forced the world to reduce its consumption, and since the consumers would be chasing the reduced supplies, the prices would've spiralled to over USD 120-130."
After the war erupted between Russia and Ukraine, the US and Western nations imposed restrictions on Moscow. However, India has continued to purchase Russian oil. (ANI)
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