India to release 5 million barrels of crude oil from its emergency stockpile in tandem with US, other nations
This is the first time that India, which stores 5.33 million tonnes of crude oil, or around 38 million barrels, in underground caverns at three locations on the east and west coasts, has released supplies for such reasons.
FollowThe Indian government said on Tuesday that it will release 5 million barrels of crude oil from its emergency reserve to reduce global oil prices alongside the United States, China, Japan, and other major countries. This is the first time that India, which has 5.33 million tonnes of crude oil, or around 38 million barrels, stored in underground caverns at three places on the east and west coasts, has released supplies for such purposes.
According to a government statement, India is adamant that liquid hydrocarbon prices be reasonable, responsible, and set by market forces. The statement read that India has often raised worry about oil-producing countries intentionally adjusting supply below demand levels, resulting in higher prices and severe effects. While the report did not specify a release date, an individual knowing the situation said the supply might be available as soon as 7-10 days. The supplies would be sold to Mangalore Refinery and Petrochemicals Ltd and Hindustan Petroleum Corp Ltd refineries.
Last week, the United States made an unprecedented request to some of the world's largest oil-consuming countries, including China, India, and Japan, to consider releasing crude stockpiles as part of a coordinated effort to reduce global energy costs.
This follows a series of refusals by members of the Organization of Petroleum Exporting Countries and its partners to expedite output increases. India has been the most muscular in exercising its muscles as a major oil consumer, lowering Saudi Arabian supplies by almost a fourth following OPEC+'s prolonged output restrictions.
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India is the world's third-largest oil user and importer, and the steady rise in worldwide oil prices has had a significant impact on the country. OPEC and other partner suppliers, notably Russia, have been adding roughly 400,000 barrels per day to the market every month, which many regards as insufficient to calm increasing prices as demand recovers to pre-pandemic levels.
