While acknowledging that a nation dependent on imports for over 85 percent of its crude needs would naturally feel the tremors of any global supply shock, the minister offered reassurance. “There is more oil available on the global market than at any point in recent history,” he said, noting that newer producers like Brazil, Guyana, and Canada are expanding output. The United States, the world’s largest oil producer, is pumping over 13 million barrels per day and planning to add another 1.5 million barrels. However, he said that while crude oil supply is not a concern, pricing is, as insurance costs have already gone up and freight rates may go up if tankers are attacked and have to be re-routed.
“Insurance prices are going up, which means there will be some additional cost. So far, merchant shipping has not been hit,” he said.