Oil importing countries like United States, India, China, Japan, South Korea, Britain are adopting new strategies to reduce the price of crude oil in the international market. Importers are moving in a new direction after the world's top energy exporters' alliance called on OPEC members to increase production.
The United States is about to release 50 million barrels of oil into the world market to control fuel prices. Following the same path, India is releasing 5 million barrels of oil from its reserves.
OPEC oil-exporting countries have repeatedly called for increased production, but have not responded. Oil prices were expected to fall slightly in the global market if exporters increased production. But at present the price is rising rapidly as the production of oil is less than the demand.
A few days ago, the price of crude oil in the world market rose to 86 per barrel. Later, it dropped to 69 a barrel, but on Tuesday it rose to 72. US President Joe Biden on Tuesday announced the release of excess oil to world markets in the wake of rising prices.
But global energy experts say that if exporting countries cut oil production further, such a move by importers would not have much effect on oil prices at all. In that case everyone has to buy oil at a higher price.
But under pressure, if OPEC members increase oil production, the oil released from the reserves could be repurchased at a lower price. According to the Hindustan Times in the Indian media, the coastal areas of India - Mangalore, Padur, Visakhapatnam have a storage of 53.3 million tonnes of oil at 3.6 crore barrels.
OPEC members cut oil production as demand for coronavirus epidemics plummeted. Although the lockdown was later lifted in almost all countries, they did not increase oil production. That is why the price of oil in the world market has skyrocketed. As a result, many oil-importing countries, including India, are under pressure. India may release its oil reserves next week to curb the crisis.
OPEC oil-exporting countries have repeatedly called for increased production, but have not responded. Oil prices were expected to fall slightly in the global market if exporters increased production. But at present the price is rising rapidly as the production of oil is less than the demand.
A few days ago, the price of crude oil in the world market rose to 86 per barrel. Later, it dropped to 69 a barrel, but on Tuesday it rose to 72. US President Joe Biden on Tuesday announced the release of excess oil to world markets in the wake of rising prices.
But global energy experts say that if exporting countries cut oil production further, such a move by importers would not have much effect on oil prices at all. In that case everyone has to buy oil at a higher price.
But under pressure, if OPEC members increase oil production, the oil released from the reserves could be repurchased at a lower price. According to the Hindustan Times in the Indian media, the coastal areas of India - Mangalore, Padur, Visakhapatnam have a storage of 53.3 million tonnes of oil at 3.6 crore barrels. @MarcDeMesel @ErdoganTalk
OPEC members cut oil production as demand for coronavirus epidemics plummeted. Although the lockdown was later lifted in almost all countries, they did not increase oil production. That is why the price of oil in the world market has skyrocketed. As a result, many oil-importing countries, including India, are under pressure. India may release its oil reserves next week to curb the crisis.