Home / Industry / Energy /  US encourages India to participate in its petroleum reserve after Russia's offer

US encourages India to participate in its petroleum reserve after Russia's offer

 The US will release roughly a million barrels of oil a day from its reserves for six months, a historic drawdown that underscores White House concern about rising gas prices and supply shortages following Russia's invasion of Ukraine. Photographer (Bloomberg)Premium
 The US will release roughly a million barrels of oil a day from its reserves for six months, a historic drawdown that underscores White House concern about rising gas prices and supply shortages following Russia's invasion of Ukraine. Photographer (Bloomberg)

The United States has been in touch with several countries including India on the release of strategic reserves. US President Joe Biden announced the release of one million barrels of oil per day from the nation's strategic petroleum reserves

The United States has been in touch with several countries including India on the release of strategic reserves. US President Joe Biden announced the release of one million barrels of oil per day from the nation's strategic petroleum reserves for the next six months in order to keep the lid on oil prices which have been spiralling in the aftermath of the Russian invasion of Ukraine.

"We have seen to date a quite extraordinary willingness to participate -- including International Energy Agency (IEA) and non-IEA members -- to participate in those coordinated releases, including the Indian government to date. So, the work of diplomacy and engagement with our allies and partners is aimed to make sure that that continues," Brian Deese, White House Director of the NEC (National Economic Council) said.

On the other hand, Russia on Thursday offered India steep discounts on the direct purchase of oil--15 million barrels in the first deal. The sanctions-hit nation will later be offering its flagship Urals grade to India at discounts of as much as $35 a barrel, according to the Bloomberg news agency.

India, the No.2 oil importer in Asia, is among a handful of nations that have been doubling down on Russian crude, defying international pressure and the US and Europe's sanctions.

Russian barrels have been flowing to Asia in greater volumes as buyers across Europe and the US shun the supply following the invasion of Ukraine. India and China have been the key buyers.

India has pointed that out Russia sells more to European nations than India and that it welcomes all competitive offers to meet burgeoning domestic demand.

"When prices go up, I think it is natural for countries to look for what are good deals for their people," External Affairs Minister S Jaishankar said, pointing to reports that say European countries have bought nearly 15% more oil from Russia in March than February.

He also pointed out India - the world's third-largest oil importer - continues to rely on supplies from the Middle East and that Russian sources were less than 1%.

Oil is a key subject for India - which imports around 85% of its needs.

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