NEW DELHI : Crude oil prices surged around 4% on Monday as the conflict between Russia and Ukraine entered the 26th day, fuelling worries over tightening supplies even as petroleum minister Hardeep Singh Puri sought to allay fears by citing increased US oil imports.

The latest spike in prices was triggered after Ukraine’s deputy prime minister Iryna Vereshchuk reiterated Ukraine’s stand that there can be no talk of surrender or laying down weapons, which raised concerns of a prolonged conflict, analysts said.

The International Energy Agency’s estimate that 3 million barrels per day (mbpd) of Russian oil and products could be curtailed from next month because of the ongoing conflict and the western sanctions has lifted prices, noted Rahul Kalantri, vice-president, commodities, Mehta Equities.

A delay in the US-Iran deal and supply concerns from Russia could support crude oil prices at lower levels, Kalantri contended. If a deal is passed and sanctions are lifted on Iran, it could boost output, which is currently more than 1 mbpd less than its peak output.

A report by Kotak Securites on Monday said that crude prices have recovered 10% from recent lows as they had corrected more than 28% from the highs. Referring to the ongoing conflict, the report said: “Talks to resolve the issue have helped reduce risk premium. However, there has been no major breakthrough yet. The longer it takes to resolve the issue; market confidence may turn shaky."

High oil prices have been a cause for concern for India as it imports 85% of its oil demand.

Union minister for petroleum and natural gas Hardeep Singh Puri sought to allay fears over supply constraints and told Parliament on Monday that Russian crude imports were only 0.2% of such imports till January this fiscal.

“About the increased oil import concerns...we require total of five million barrels per day. 60% of it comes from the Gulf. We have imported from Russia just 0.419 million metric tonnes, that is 0.2% of total requirement (during April-January this fiscal)," Puri said. The government is monitoring the situation, the minister said.

Puri stressed the need for a robust relationship with the US and increasing US oil imports. “In the current fiscal year imports from the US are likely to grow to 16.8 million metric tonnes or a value of about $10 billion of crude oil. If I add the amount of gas we are importing and coal, the figure comes to $13.5 billion of imports from the US. There is a robust relationship and I see it continue for some time," he said.

The US had recently said that purchasing oil from Russia amid the ongoing war and sanctions would put India on the “wrong side of history", though it would not amount to a violation of the sanctions.