New Delhi: Oil prices slipped below their seven-year high of $80 a barrel on Thursday after Washington reported that the US has agreed to a coordinated release of strategic crude reserves by India, China, Japan and South Korea. has demanded. Prices, a move New Delhi said was pointless as it would have little effect.
“strategic” oil reserves It was never intended for a situation like this… it is for an unforeseen situation, if an earthquake occurs, there is a global outbreak of hostilities, and the oil supply is cut off,” the oil minister said. Hardeep Singh Puri Told Bloomberg TV on Wednesday that when this news came.
Still, the global benchmark Brent slipped below $80 a barrel for the first time in six weeks, as rising concerns over rising Covid cases in Europe and predictions of a warmer winter were weighed on.
Words that China was preparing to sell some of its reserves to domestic refiners added to the downward pressure.
Along with the US, the four Asian economies are the top five oil consumers in the world.
At 39 million barrels against daily demand of about 5 million barrels per day, India’s strategic reserves are a fraction of the US’s 714 million barrels, China’s 475 million barrels and Japan’s 324 million barrels, which, under the law, cannot be tapped. Is. Reserves for market intervention.
Nevertheless, in total, reserves supply 15 days globally, currently estimated at 99 million barrels a day.
The Joe Biden White House move appears to be an attempt to ease pressure at home as Americans are smart under high fuel prices and after sending a signal to the OPEC+ group rejecting an appeal to calm prices . At home, Biden is under pressure to tap into reserves and ban oil exports.
Reaction to discussions between energy ministers of oil exporting and consuming countries at the ADIPEC oil industry meeting concluded in Abu Dhabi suggests OPEC is prepared to maintain current production levels as build-up in inventory does not represent any supply risk .
Puri, who attended the meeting, told Bloomberg TV, “I have spoken to my counterparts in Saudi Arabia, UAE, Russia” and there has been a “united push” on oil production (increasing production).
Separately, he told CNN, “There are five million barrels sitting there but they (OPEC) are not producing.”
At best India, which imports 85% of its oil needs, can expect oil to remain capped to provide some headroom as the economy looks to overcome the pain of the pandemic in the last quarter of the 2020-21 financial year. tries.
“strategic” oil reserves It was never intended for a situation like this… it is for an unforeseen situation, if an earthquake occurs, there is a global outbreak of hostilities, and the oil supply is cut off,” the oil minister said. Hardeep Singh Puri Told Bloomberg TV on Wednesday that when this news came.
Still, the global benchmark Brent slipped below $80 a barrel for the first time in six weeks, as rising concerns over rising Covid cases in Europe and predictions of a warmer winter were weighed on.
Words that China was preparing to sell some of its reserves to domestic refiners added to the downward pressure.
Along with the US, the four Asian economies are the top five oil consumers in the world.
At 39 million barrels against daily demand of about 5 million barrels per day, India’s strategic reserves are a fraction of the US’s 714 million barrels, China’s 475 million barrels and Japan’s 324 million barrels, which, under the law, cannot be tapped. Is. Reserves for market intervention.
Nevertheless, in total, reserves supply 15 days globally, currently estimated at 99 million barrels a day.
The Joe Biden White House move appears to be an attempt to ease pressure at home as Americans are smart under high fuel prices and after sending a signal to the OPEC+ group rejecting an appeal to calm prices . At home, Biden is under pressure to tap into reserves and ban oil exports.
Reaction to discussions between energy ministers of oil exporting and consuming countries at the ADIPEC oil industry meeting concluded in Abu Dhabi suggests OPEC is prepared to maintain current production levels as build-up in inventory does not represent any supply risk .
Puri, who attended the meeting, told Bloomberg TV, “I have spoken to my counterparts in Saudi Arabia, UAE, Russia” and there has been a “united push” on oil production (increasing production).
Separately, he told CNN, “There are five million barrels sitting there but they (OPEC) are not producing.”
At best India, which imports 85% of its oil needs, can expect oil to remain capped to provide some headroom as the economy looks to overcome the pain of the pandemic in the last quarter of the 2020-21 financial year. tries.
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