The US is considering releasing 180 million barrels of oil from its Strategic Petroleum Reserve (SPR). Its purpose is to bring down the price of crude. Crude prices skyrocketed after Russia’s attack on Ukraine. At one point the price of crude had risen to $139 per barrel. Right now it is $108 a barrel. If the US releases crude from its reserves, it will reduce the price of oil. India will benefit from this.
America will release oil from reserves for the third time in six months
America will gradually release 180 million barrels of oil from its reserves. Although this is equivalent to the global demand for crude for just two days, it will have a significant impact on the price. For the third time in the last six months, America is going to release oil from its reserves. However, it will probably release so much crude for the first time in 50 years.
IEA member countries can also release oil from reserves
The member countries of the International Energy Agency (IEA) will also decide on the release of oil from the reserve in the meeting on Friday. If the IEA member countries agree on this, then there can be a big fall in crude prices. Earlier this month, crude prices hit a 14-year high.
Read also: Yatharth Hospital submits draft papers to SEBI for IPO, company to raise Rs 610 crore
IEA member countries can decide on Friday
A spokeswoman for New Zealand’s energy minister said, “At present, the total amount of oil released by IEA member countries from their reserves has not been decided. This will be decided in the meeting to be held on Friday. Then the volume for each country will be decided. will be done.” The attack on Ukraine has had an impact on the supply of crude.
There is a possibility of a big reduction in the supply of crude from April 1
Russia is the third largest producer of crude in the world. It accounts for about 14 per cent of the total supply. The IEAA has said that due to sanctions and lack of interest in buying crude from Russia, the supply may decrease by 30 lakh barrels a day from 1 April. Russia supplies about 40 to 5 million barrels of crude.
US reserves have 56 million barrels of oil
Currently, there are 568 million barrels of crude in the US reserves. This is the lowest stock since May 2002. The IEA considers the US an exporter of petroleum. Goldman Sachs has said in its report that the release of oil from the US reserves will increase the supply of oil by 1 million barrels per day. America can release oil for about six months.
India can have big advantage
Experts say that India will benefit from releasing oil from America’s own reserves. This is because India meets 85 per cent of its crude requirement from imports. India’s import bill will increase due to higher crude prices in the global market. Oil marketing companies did not increase the prices of petrol and diesel in India for almost three months. In the last 10 days, for 9 days, companies have increased the prices of petrol and diesel.
,