Source: India will not join IEA's initiative to tap oil resources
A government source confirmed that India does not plan to join the International Energy Agency's (IEA) initiative aimed at releasing strategic oil reserves. This comes as global oil prices have risen due to supply concerns caused by the conflict in Iran.
The G7 finance ministers will meet to discuss possible releases of oil reserves in order to calm the markets.
On Monday, oil prices soared to $119 a barrel, their highest level since mid-2022. This was after major producers reduced supplies, and there were fears that shipping would be disrupted for a long time due to the U.S./Israeli war against Iran.
India is a member of the IEA.
Sources also stated that India does not plan to limit its fuel exports, as it has a'reasonably comfortable' stock of gasoline and jet fuel.
New Delhi will join the US in 2021 and release 5 million barrels of oil from its Strategic Petroleum Reserves (SPRs).
INDIA IN A COMPETITIVE POSITION SOURCE SAYS
India has three SPRs with a total capacity of 5.33 million metric tons. A separate government source stated that the storage facilities currently hold 4,000,000 tons of oil.
Sources said that India was in an advantageous position, and it had not exercised the first right of refusal to buy oil from ADNOC.
Since Washington granted New Delhi last week a waiver of sanctions for 30 days to purchase Russian 'oil' loaded on ships as of March 5, Indian refiners have bought millions of?barrels? of cargos?of prompt Russian oil?that are stuck at sea.
Gas shortages have hit Indian industries including fertiliser producers.
A second source said that the country is hoping to obtain additional liquefied petrol gas from the US and Canada. This fuel is used as a cooking fuel.
For the first time in an year, the nation raised its cooking gas price and asked refiners for a greater production of LPG.
(source: Reuters)
