After America, India is considering making more reserves of crude oil

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Mumbai: After America, now India is also thinking of filling its strategic storage areas of crude oil. Government sources said that India is planning to build an additional 9.2 lakh barrels of crude oil in these empty storage facilities.

Discussions about which grades and when will be procured are still at a preliminary stage. Following Russia’s invasion of Ukraine, Russia has become a major supplier of crude oil to India, making it less likely that India will look to OPEC and other countries to build up its crude reserves. Rakhi America and India are preparing a plan to increase the reserve of crude oil.

Brent crude oil is currently trading 43 to 45 percent below 2022. The price has been reduced due to demand concerns.

The reserves will be created in India’s two crude oil storage facilities at Visakhapatnam and Mangalore. Sources also said that up to 25 per cent crude oil filling in the reserve system is being considered.

The proposed purchase is not particularly large as it bought 232.4 million tonnes of crude in the year ended March 31.