The Indian government on Monday stated that it is closely monitoring global energy markets as well as potential energy supply disruptions as a fall-out of the evolving geopolitical situation.
"Government of India is ready to take all appropriate action, as deemed fit, for mitigating market volatility and calming the rise in crude oil prices," Minister of State in the Ministry of Petroleum and Natural Gas Rameswar Teli said in a written reply in the Parliament during the second part of the Budget Session.
The Centre's comments come amid the rising geopolitical tensions in Ukraine after Russia invaded the country on February 24 after its president Vladimir Putin's orders, which has led to volatility in oil prices, emerging markets across the globe.
It also added that Indian Oil & Gas Public Sector Undertakings have imported less than 1 per cent of their total crude oil import from Russia in the year 2021-2022 (till January).
Further, to ensure security of crude supplies and to mitigate the risk of dependence on crude oil from single region, Oil PSUs have diversified their crude basket and are procuring crude from countries located at various geographical locations viz. Middle East, Africa, North America, South America etc, the government further added.
Recently, after Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) has bought two million barrels of Russian crude oil as Indian refiners stepped up efforts to secure Russian oil available at deep discounts. Just like IOC, HPCL also bought Russian Urals crude through European trader Vitol, sources with knowledge of the development told news agency PTI.
Western sanctions on Russia over its invasion of Ukraine has prompted many companies and countries to shun its oil. This has led to Russian crude being available in the market at deep discounts.
Meanwhile, oil prices jumped $2 on Monday as Ukrainian forces dug in against heavy Russian attacks, while major oil producers reported they are struggling to produce their allotted quotas under a supply agreement.
Brent crude futures climbed $1.96, or 1.8 per cent, to $109.89 a barrel at 0039 GMT, adding to a 1.2 per cent rise last Friday. US West Texas Intermediate (WTI) crude futures rose $2.09, or 2 per cent, to $106.79, extending a 1.7 per cent jump last Friday.
The latest report from the Organization of the Petroleum Exporting Countries and allies including Russia -- together called OPEC+ -- showed some producers are still falling short of their agreed supply quotas.
OPEC+ missed its production target by more than 1 million barrels per day (bpd) in February, three sources told Reuters, under their pact to boost output by 400,000 bpd each month as they wind back sharp cuts made in 2020.
(With agency inputs)
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