India plans to sell 5 million barrels of crude oil from its strategic petroleum reserve (SPR), Bloomberg reported, citing people familiar with the situation. The move came after the US requested big oil importers to consider releasing oil from their reserves in a coordinated effort to curb prices. According to the sources, the Indian authorities would officially announce the release within a week. They added that the country would likely consider releasing more tranches later.
India’s SPR oil will be sold to state-owned refiners such as Hindustan Petroleum Co Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL), the sources added. While the planned release can cover just less than half of India’s daily oil demand, it will show that oil consumers are willing to cooperate against OPEC+ reign over markets. US President Joe Biden is preparing to announce the coordinated SPR release in cooperation with India, Japan, and South Korea as soon as Tuesday. China has also said that it is working on tapping its oil reserves.
