India will not use oil from strategic reserves

India has rejected a request of the administration of the US President Joe Biden to consider freeing some oil from strategic reserves for their sale on the world market to reduce world oil prices, the Minister of Oil and Natural Gas Hardeep Singh Puri said, Angi reports.

“Strategic oil reserves have never been meant for such a situation. Strategic oil reserves have been created in case of force majeure - natural disasters or war if the supply of this raw material stops," he explained. "It would be useless to free oil from strategic reserves to lower oil prices."

Earlier, the Biden administration asked the leaderships of South Korea, China, India and Japan to study the possibility of selling part of the oil from their strategic reserves, even though, according to the laws of these countries, strategic oil reserves are not intended for market intervention. Washington offered to take such a coordinated step to ensure the reduction in energy prices and thereby contribute to the recovery of the world economy.

Together with the United States, four Asian economies make up the world's five largest oil consumers. India's strategic oil reserves are 39 million barrels. In the United States, they reach 714 million barrels, in China - 475 million barrels, in Japan - 324 million barrels, in South Korea - 71 million barrels.

To recap, oil prices are rising after falling to their lowest levels in six weeks on signals that the United States and China are preparing to start selling raw materials from strategic reserves.

As reported, the United States is asking Asian countries to open oil reserves.

Tags: USA, Asia, negotiations, price, petroleum products, oil deliveries, gasoline, oil reserves, oil market, Biden, China

Read also

Минэнерго расширит перечень объектов критической инфраструктуры в энергетике – Владимиров
Газпром впятеро сократил транзит через Украину
Лидером по тендерным поставкам электроэнергии стал зять Злочевского