The government official said that the release of India’s Strategic Petroleum Reserve (SPR) was “a symbolic gesture” because it needed to create space as part of an effort to make money by renting out storage and was already selling oil.
A government official said that India plans to release 5 million barrels of oil from its stockpiles, and the release of other major consumers is unlikely to change its crude oil import plan because its sales from the cave are already below the target.
The United States said on Tuesday that it will work with India and other countries to release millions of barrels of oil from its strategic reserves. No time specified.
India is the world’s third-largest oil importer and consumer. More than 84% of its oil demand comes from imports and has a Strategic Petroleum Reserve (SPR), which can store up to 5 million tons or approximately 37 million barrels of oil to prevent supply disruption .
The government official, who asked not to be named, said that the release of India’s Strategic Petroleum Reserve (SPR) is “a symbolic gesture” because it needs to create space as part of an effort to make money by renting out storage and is already selling oil. .
India has repeatedly expressed concerns about rising oil prices and hopes that the Organization of Petroleum Exporting Countries and its Russia-led allies, namely OPEC+, will increase production more quickly.
The country will sell 5 million barrels of oil to Mangalore Refining and Petrochemical Co., Ltd. and Hindustan Petroleum Company, which is equivalent to one day’s oil demand.
India filled storage space with cheap oil last year. Earlier this year, it reformed its SPR policy to commercialize half of its storage space and lease the space to Indian and foreign companies.
In order to obtain enough space for its plan, India must sell about 13 million barrels of oil, because 5.5 million barrels of space have been leased to Abu Dhabi National Oil Company.
Another source said that the Indian Strategic Petroleum Reserve Company Limited (ISPRL), which manages the Federal Reserve, has sold about 5 million barrels of oil from the cave since sales began in August.
For the latest car news and reviews, please follow carandbike.com Twitter, Facebook and subscribe to our YouTube channel.