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Crude oil at $100 per barrel, Govt may release Strategic Petroleum Reserves | Economy News

By Abhishek Sankhyayan

New Delhi: To check the volatility and cost of crude oil, India can release crude oil from its SPR. The Russian war in Ukraine has thwarted global power struggles. Experts suggest that crude oil could hit even $ 125 per barrel later this year.

All major oil-producing countries have joined forces to reduce crude oil prices. On February 23, White House press secretary Jen Psaki said the release of the reservations was “certainly an option on the table.” Earlier in November last year. US President Joe Biden has said the US will release 50 million barrels of oil from SPR in order to reduce oil prices. The US has mentioned that the release of SPR from the US will be possible with close cooperation with major powers, including China, India, Japan, South Korea, and the UK.

India is the world’s third-largest oil importer of crude oil and produces over 80% of its oil needs. Currently Indian explorers make crude oil reserves of 64.5 days. In addition, India also owns 39.62 million barrels of crude oil through its ISPRL (Indian Strategic Petroleum Reserves Limited). At present India has oil reserves for 74 days.

In July last year, the Government approved the establishment of two commercial cum-based storage facilities with a total storage capacity of 6.5 MT underground storage facilities in Chandikhol (4 MT) and Padur (2.5 MT) under the PPP scheme. under phase II of the SPR system. When level II is completed, it will meet an additional 12 days of Indian crude demand.

Reuters reported In August, 2021 that India had started selling oil from its Strategic Petroleum Reserve (SPR) to state renewals as it implemented a new policy to boost its government reserves by leasing space.

Let us know more about the Oil Storage System:

What is Strategic Petroleum Reserve (SPR)

Strategic Petroleum Reserve (SPR) is reserved by the government of a country or a private company, for use in case of any crisis or emergency.

India handles oil reserves through a Government of India Strategic Petroleum Reserves Limited (ISPRL). ISPRL is a wholly owned subsidiary of the Oil Industry Development Board (OIDB), which operates under the direct control of the Petroleum and Natural Gas Industry.

Advantages of the Oil Storage Program (SPR)

Petroleum and Natural Gas Shri Dharmendra Pradhan has told parliament that the Govt has fully empowered the SPR Oil reserves during low crude oil prices in April / May 2020, which led to national savings. language for around 5000 cr.

Countries with Largest Oil Refinery in the World

US – 714 million barrels

China – 4000 Million barrels

Japan – 314.5 million barrels

South Korea – 146 million barrels

Spain – 120 million barrels

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