Oil at $150 per barrel? Qatar energy minister’s warning jolts global markets--India says supplies comfortable

Global markets turned volatile on Friday after Saad al-Kaabi, Energy Minister of Qatar, warned that the ongoing conflict in West Asia could push crude oil prices to $150 per barrel if energy production across Gulf countries is disrupted. The remarks triggered nervousness across financial markets, including in India, even as government sources said the country’s energy supply situation remains comfortable.

Officials said India currently holds crude oil reserves sufficient for around 25 days of domestic demand, offering a buffer against any immediate supply shocks.

$150 per barrel oil risk raises global concerns

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In an interview with a foreign media outlet, Kaabi warned that the ongoing war in West Asia could severely disrupt global energy supplies. He said that if tensions escalate further, Gulf energy exporters may be forced to halt production within days, potentially pushing crude prices as high as $150 per barrel.

He also cautioned that even if the conflict ended immediately, it could take weeks to months for global oil and gas supply chains to return to normal.

The warning rattled global markets, sending oil prices higher and increasing risk aversion among investors.

Adequate crude stock with refiners

Government sources said Indian refiners, including Mangalore Refinery and Petrochemicals Limited (MRPL), currently have adequate crude inventories.

While some units experienced temporary disruptions recently, officials said the overall refining and supply situation remains under control. They added that refiners continue to maintain sufficient stock to meet domestic demand.

Reduced dependence on Strait of Hormuz

Officials also highlighted that India’s reliance on shipments through the Strait of Hormuz has declined significantly in recent years.

The country has diversified its crude procurement by importing from multiple regions, reducing its exposure to geopolitical tensions in the Gulf.

This diversification strategy has helped India maintain stable energy supplies even during periods of global uncertainty.

LNG supply remains stable

On the liquefied natural gas (LNG) front, the situation also remains comfortable. Government sources said only around 30 per cent of India’s LNG imports pass through the Strait of Hormuz.

India has increased LNG imports from alternative suppliers as part of its diversification strategy. Imports from the United States now account for roughly 10 per cent of the country’s LNG supply.

LPG supply secured for households

Officials said recent LPG procurement decisions were taken to ensure uninterrupted supply for domestic consumers.

India also has strong LPG production and refining capacity, which supports domestic demand and reduces reliance on imports during periods of global volatility.

Oil prices surge, markets turn volatile

Following the warning, benchmark Brent Crude surged past $91 per barrel, rising over 5 per cent, while West Texas Intermediate Crude climbed above $87 per barrel, up nearly 8 per cent.

The spike in oil prices and rising geopolitical uncertainty weighed on equities. The benchmark Nifty 50 index ended Friday’s session 315 points lower at 25,450, extending losses during the shortened trading week.

Despite the global concerns, officials reiterated that India remains in a comfortable position on energy supplies due to diversified sourcing, adequate crude inventories and strong domestic refining capacity.

MCX crude jumps over 8 per cent amid global oil rally

The surge in global oil prices was also reflected in domestic commodity markets. Crude oil futures on the Multi Commodity Exchange of India (MCX) rallied sharply during Friday’s session.

At around 17:58 pm, the MCX crude prices were near Rs 626 higher, or 8.56 per cent, at the end of trade, tracking the spike in international benchmarks such as Brent Crude and West Texas Intermediate Crude.

The sharp move in MCX crude came as traders reacted to rising geopolitical tensions in West Asia and concerns that disruptions in Gulf energy exports could tighten global supply.

A stronger US dollar also added to volatility in commodity markets. The US Dollar Index moved above the 99 mark during the session, reflecting risk-off sentiment across global financial markets.