• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 1 hour Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 2 days Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 13 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 16 hours Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 1 day Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 18 hours Modest drop in oil price: SPRs vs US crude inventory build
  • 1 day 2019 - Attack on Saudi Oil Facilities.
  • 3 days Ukrainian Maidan after 8 years
  • 3 days Peak oil - demand vs production
  • 4 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
  • 4 days NordStream2
  • 4 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

India May Join China In Bid To Lower Oil Prices

The world’s third-largest crude oil importer, India, could join China in tapping into its strategic petroleum reserve in a bid to sell lower-priced crude to its refiners amid rallying international oil prices.

India is reportedly considering selling half of its SPR to attract private participation in expanding its strategic storage capacity, government sources told Reuters last week.

The sale of crude from reserves could also be a move from one of the importers most sensitive to price hikes to reduce the price of crude for its refiners, Reuters columnist Clyde Russell says. India’s SPR currently holds around 36.5 million barrels of crude oil. 

India has been the most vocal critic of the OPEC+ production reduction pact this year, saying that it does not support “artificial cuts to keep the price going up.” On several occasions, India’s top officials have criticized OPEC+ for keeping the market tight and prices high and have expressed concern that the higher crude and fuel prices in India would slow down the economic and oil demand recovery.

India’s move to commercialize half of its SPR is primarily aimed at raising financing for additional SPR storage, but it could also ensure cheaper oil from storage to Indian refiners, according to Reuters’ Russell.

Last week, reports emerged that the world’s top oil importer, China, is looking to tap its crude reserves.

China has started to release more than 20 million barrels of crude oil from its strategic reserve in a move seen as seeking to curb the recent oil price rally, Energy Intelligence reported last week, quoting trading sources. The reported release from the strategic petroleum reserve is also aimed at putting inflation under control.

Various market and trade sources told Energy Intelligence that China was about to release the equivalent of between 22 million barrels and over 29 million barrels, or between 3 million and 4 million tons.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on July 27 2021 said:
    It is an exercise in futility for two reasons. The first is that the quantities that could be released will hardly have any impact on oil prices. The second reason is that such an act undermines the whole purpose of the Strategic Petroleum Reserve (SPR) which is to ensure energy security in times of crises or rising tensions.

    Under financial pressure and rising oil import bill, India might be tempted to release some volumes of oil from its SPR. However, prices could be higher when the time comes for it to replace them.

    However, China is a different story altogether. It is the world’s largest economy based on purchasing power parity (PPP) and one of the richest countries in the world so it isn’t affected by rising oil prices like India.

    Moreover, I very much doubt that China would release any quantities of oil from its strategic reserves. After all, these reserves are the guarantor of China’s energy security at a time of escalating tension with the United States. Furthermore, China is enjoying increasing purchases of discounted Iranian crudes.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London
  • No ur on August 02 2021 said:
    India raises domestic fuel prices during the lowest international oil prices ever seen, then complains about Opec+
    ???????????

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News