India is considering extracting crude oil from its strategic reserves | India is considering extracting crude oil from its strategic reserves

Photo:FILE

India is considering extracting crude oil from its strategic reserves

Highlights

  • India is looking at the possibilities of extracting crude oil from strategic oil reserves.
  • Looking at the lines of big economies to bring down the prices of crude oil.
  • Oil extraction from strategic reserves will be done in coordination with other countries.

New Delhi: India is looking at the possibilities of extracting crude from its strategic oil reserves on the lines of major economies to bring down crude oil prices. A senior government official said on Monday that India is working on the modalities for extraction from its strategic oil reserves. However, the government has not fixed any time limit for this. The official, who did not wish to be named, said the government was in touch with major oil consuming countries in this regard.

He said that the extraction of oil from the strategic reserves will be done in coordination with other countries. The US has suggested the world’s major oil-consuming countries to withdraw some oil from their strategic reserves after OPEC, a group of oil exporting countries, turned down a request to increase crude oil production. Apart from India, this request has also been made from China and Japan.

The rise in the price of crude oil in the international market has had a great impact on India. Being the third largest oil consumer country in the world, India has to spend a large part of its foreign exchange on oil imports. After the US move, the price of Brent crude has come down to the level of $ 78.72 per barrel, which was at $ 81.24 per barrel till ten days ago. India has strategic oil reserves of 53.3 million tonnes of crude oil.

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