On 23 November 2021, the US administration authorised the release of 50 million barrels of crude oil from the strategic petroleum reserve (SPR) operated by the US Department of Energy (DOE). 50 million barrels of oil is about half the global oil consumption per day and about three days of US oil consumption. Oil prices had touched levels not seen in seven years driving the US decision to release SPR oil crude oil. In the words of the Secretary DOE, the release of oil from the SPR underscored the US President’s commitment to use the tools available to bring down costs for working families (by reducing the retail price of gasoline in the US) and continue economic recovery. The decision to release SPR oil by the US was coordinated with parallel decisions in China, India, Japan, South Korea, and the United Kingdom. India’s share in the coordinated release of oil stored in SPRs was 5 million barrels, a tenth of US SPR release, not sufficient to influence oil prices given that the world consumes 100 million barrels a day (b/d).
India’s strategic petroleum reserves: Cost and benefit | ORF (orfonline.org)
