India plans to withdraw from its oil reserves with other consumers

Three government sources told Reuters Monday that India plans to tap into its strategic oil reserves in coordination with other consumers.

US President Joe Biden has called on China, India, South Korea and Japan to implement a coordinated oil drawdown as US gasoline prices soar due to its steep decline in popularity in view of next year’s congressional elections.

The request came after the US government failed in able to persuade the OPEC + alliance to pump more oil. The group, which inflates major oil producers, sees no shortage in the global supply of crude oil.

The three Indian government sources said today they have consulted with the United States on the withdrawal of strategic reserves.

India is the third largest oil importer in the world and has approximately 26.5 million barrels of crude oil in its strategic oil reserve.

In a related context, oil prices fell on Monday, to remain under pressure from high cases of Covid-19 disease in Europe and the possibility of Japan resorting to withdrawal from its national reserves, which has raised concerns about increased supply and weak demand. .

Prices for Brent and West Texas Intermediate crude in the United States fell during trading, to their lowest levels since October 1.

During Monday’s trading, Brent crude fell 0.19% to $ 78.74 a barrel, while US crude fell 0.13% to $ 75.8.

Over the past week, Brent crude fell 4%, its lowest level since last October, and US crude fell 5.4%.

Meanwhile, the prospect of Japan’s reliance on strategic oil reserves has kept the pressure on prices and kept Brent crude below $ 80.

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