Amid the conflict between Israel and Iran, oil prices have been a matter of concern across the world. Soon after Israel attacked Iran the market sparked concerns that the Middle East oil supply could get disrupted. On Friday also, the oil prices jumped as per reports.Meanwhile, according to one of the recent statements from Indias Union Minister Hardeep Singh Puri, he has discussed the recent trends in the global oil markets and their implications for international energy stability with OPEC Secretary General, Haitham Al-Ghais on Friday. As per an official press release, as one of the worlds fastest-growing economies, India is committed to supporting efforts to achieve balance in global energy markets, said Hardeep Puri during the conversation, with the Ministry of Petroleum and Natural Gas.OPEC Member CountriesAccording to current estimates, 79.5% (1,243.52 billion barrels) of the worlds proven oil reserves are located in OPEC Member Countries.OPEC Member countries include the Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization after signing an agreement in 1960. These countries were later joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975), Angola (2007), Equatorial Guinea (2017) and Congo (2018).Factors responsible for oil pricesThere could be several factors that are considered responsible for oil prices. Some of them are:Geopolitical tensionsWhile conflicts in the Middle East can lead to concerns about oil supply disruptions, the markets reaction depends on various factors beyond just the conflict itself.Diverse global oil sourcesThe global oil market is supplied by various countries, not just Iran or Israel. Therefore, disruptions in one region might be offset by increased production elsewhere.Reduced reliance on Middle Eastern oilOver the years, many countries have diversified their oil sources to reduce dependence on the Middle East, lessening the impact of regional conflicts on global oil prices.Diplomatic effortsInternational diplomatic efforts often work to de-escalate conflicts and mitigate their impact on global markets, including the oil market.OPECs roleThe Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, can adjust their production levels to stabilize oil prices in response to geopolitical events.Market speculationWhile geopolitical tensions can initially cause oil prices to rise due to uncertainty, market speculation and traders reactions can sometimes exaggerate the actual impact on supply and demand.Energy transitionAs the world shifts towards renewable energy and other alternatives, the sensitivity of oil prices to geopolitical events may decrease over time, as oil becomes less central to global energy consumption.
