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India may join major oil consuming nations in releasing crude oil from strategic storages as they fight in coordinated fashion to dampen prices, according to a report.

This follows an unusual request from the US last week to largest oil-consuming nations, including India to consider releasing crude stockpiles to lower global energy prices.

Earlier, the Organisation of the Petroleum Exporting Countries (OPEC) and its allies had rejected requests for production increases.

The Mint quoting an official reported that India is working on releasing stocks from strategic reserves. The official did not give a timeline but said Indian is in touch with other major oil consumers.

India is the world’s third-largest oil consumer and importer.

Impact of US call on prices

After the US called for a joint effort to bring down energy prices, global oil prices have started declining. Brent crude has declined to $78.72 per barrel. On October 26, it had hit a multi-year high of $86.40.

India also feels high oil prices are undermining recovery from Covid-19 pandemic, besides adding to inflation pressures. Retail petrol and diesel prices have increased to all-time high levels before the government cut taxes.

Strategic reserves

India has 5.33 million tonnes of underground crude oil storage at two places on the east and the west coast, according to the Mint report.

Other major oil consuming nations China and Japan also signalled their willingness to release stockpiles, it added

The news report further said that India has built 1.33 million tonnes of storage at Visakhapatnam, and 1.5 million tonnes at Mangaluru and 2.5 million tonnes at Padur.

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