About:
- The oil will be released “in parallel and in consultation with” the US, China, Japan and South Korea, the Oil Ministry said in a statement, without specifying a timeframe.
Why are these countries releasing oil from strategic reserves?
- It is part of a concerted effort to negate upward pressure on crude prices from OPEC+ — a 13-country grouping of oil exporters that has been joined since 2016 by 10 others led by Russia to decide production quotas — keeping supply below demand, even though the action is largely symbolic in nature.
- India has called for an increase in the supply by OPEC+ at multiple international forums and in bilateral talks with oil producing countries.
- India argues that high crude oil prices are impacting the post-Covid economic recovery, especially in the developing countries.
