'Crude Prices Will Fall Soon': Petroleum Minister Hardeep Singh Puri’s Big Oil Forecast, Here Is Why

Union Petroleum Minister Hardeep Singh Puri on Wednesday said that global crude oil prices are likely to fall in the coming weeks — a sign of relief for countries struggling with inflation. His comments come as Brent crude continues to trade high, between $85 and $87 a barrel, worrying policymakers.

"The price of oil will come down as more sources of supplies are coming. We have enough oil around," said the minister, highlighting India's proactive strategy in securing energy supplies from a wider range of countries.

While he didn’t offer a specific timeline, he pointed to several global developments that could help ease pressure on oil markets.

Puri stated that India has broadened its oil import network. "India has diversified the sources of supplies from 27 to 40 countries now. 16 per cent of oil market growth has come from India, and studies show it may go up to 25 per cent."

Puri pointed to three reasons for his forecast: supply chains are stabilising as key oil regions see fewer disruptions; countries like the U.S. may release more oil from reserves; and global demand is cooling, with slower growth in Asia and Europe and a weaker recovery in China.

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Why it is important

As one of the world’s largest oil importers, India is highly vulnerable to crude price swings. A fall in international prices could ease the country’s import bill and bring relief to consumers already grappling with high fuel costs.

Although Puri stopped short of hinting at any immediate domestic fuel price cuts, he stressed that the government is committed to keeping energy affordable.

“We remain engaged with producing countries to ensure steady, affordable supply,” he noted

Earlier this year, oil markets were rattled by fears of prolonged disruptions due to geopolitical tensions, particularly in Eastern Europe and the Middle East. However, recent data shows demand stabilising and inventories improving, allowing for cautious optimism.