Oil buyers, Producers Dialogue Needed For Market Stability, says Hardeep Singh Puri

India’s Oil Minister, , emphasized the importance of dialogue between oil producers and consumers to help stabilize global oil prices. His remarks came after oil prices surged more than 2% following OPEC+’s decision to delay a planned increase in oil output by a month.

India, which is the world’s third-largest oil consumer, imports over 80% of its oil, making fluctuations in global oil prices especially impactful on the country’s economy. Minister Puri highlighted the need for both producers and consumers to engage in constructive discussions to determine a “realistic price” for oil, given that production cuts are not currently a major issue.

“There is no shortage of oil,” Puri pointed out, noting that new oil producers are entering the market while some countries are increasing their output. He called for stability and predictability in oil markets, which would benefit both producers and consumers.

Commenting on the recent OPEC+ decision, Puri explained that oil-producing countries have the right to decide whether to fully utilize their assets, but in the long run, unutilized assets may lose their value. Some producers, on the other hand, are eager to maximize their output and monetize their resources more quickly, he observed.

Looking ahead, Puri acknowledged that global energy transitions, such as the rise of green hydrogen and shifts toward cleaner energy, will likely alter the global demand for oil over the next five years. Despite these changes, he expects India to continue sourcing a significant portion of its oil from the Gulf region as global economic dynamics evolve.

Puri’s comments were made on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), an annual event that brings together global energy leaders to discuss industry trends and challenges.