India also released 5 million barrels of oil reserves… “Fear of artificial supply adjustment in oil-producing countries”
The Indian government has decided to release 5 million barrels of oil from its stockpile in response to a request from the United States for cooperation to stabilize international oil prices.
“India has agreed to release 5 million barrels of crude oil from its strategic oil reserves,” the Ministry of Petroleum and Natural Gas said in a press release.
The Ministry of Petroleum said, “This emission measure will be carried out simultaneously in consultation with major international energy consuming countries such as the United States, China, Japan and South Korea.”
The Ministry of Petroleum added that India has continued to express concerns about oil supplies being artificially adjusted by oil-producing countries, resulting in higher prices and negative consequences.
Earlier, a high-ranking Indian government official told PTI News, “The release will start within 7 to 10 days at the earliest.”
The discharged oil will be sold to Hindustan Petroleum, which is connected to storage facilities and pipelines.
The US government has requested major consuming countries, such as Korea, Japan, China and India, to release its oil reserves to curb the recent surge in oil prices around the world.
The White House has officially announced that it will release 50 million barrels of oil from its stockpile.
Although India is an oil producer, it is also the third largest oil importer in the world due to its high demand.
It is known that India currently stocks 38 million barrels of crude oil at three oil storage facilities in the eastern and western parts of the country.
This is equivalent to about 9 days’ worth of domestic demand before the COVID-19 crisis, the Economic Times of India explained.
Major oil producing countries drastically reduced production as global energy demand plummeted during the spread of COVID-19, but have not expanded production to the same level as demand increased as the economy recovered.
As a result, as international oil prices soared, the United States demanded an increase in production, but oil-producing countries, such as the Organization of Petroleum Exporting Countries, do not change their position.