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As global oil market is going through volatility, India is looking at ways to support International Energy Agency's (IEA) move to release oil from its emergency reserve.
In a statement, the Union ministry of petroleum and natural gas said that the Government of India welcomes the announcement by the International Energy Agency for collective oil stock release of 120 million barrels.
It also said that, Centre has also taken note of the US government's decision, late last month, to release 180 million barrels from its strategic petroleum reserves, over the next six months, to calm rising global fuel prices.
"In the interest of collaborating with like minded countries on these positive initiatives, government of India is examining what it can do to support these actions, " the ministry said in its statement.
As a major consumer of energy, India has consistently espoused the importance of stable, affordable and accessible global energy markets, it said, adding that the government of India hopes that these initiatives will bring equanimity to global energy market.
In February, the ministry had said that it is committed to “supporting initiatives for releases from Strategic Petroleum Reserves."
In December, the government had agreed to release 5 million barrels of crude oil from its strategic petroleum reserves in consultation with other global energy consumers amid rising prices and supply concerns.
As per the consumption pattern of 2019-20, the total capacity in the established Strategic Petroleum Reserves facilities of 5.33 Million Metric Tonnes (MMT) is estimated to provide for about 9.5 days of crude oil requirement.
India has three strategic reserves -- Vishakhapatnam (1.33 MMT), Mangalore (1.5 MMT) and Padur (2.5 MMT) -- operated by Indian Strategic Petroleum Reserve (ISPRL).
Around 9.50 p.m., the June contract of Brent crude futures on the Intercontinental Exchange was at $99 per barrel, lower by 2.05% from its previous close. The May contract of West Texas Intermediate on the NYMEX 1.95% to $94.35 per barrel.
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