InvestorQ : What does the US releasing 50 million barrels from its strategic petroleum reserves actually mean for oil prices?
Deepa Salunkhe made post

What does the US releasing 50 million barrels from its strategic petroleum reserves actually mean for oil prices?

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Arya Nanda answered.
2 weeks ago
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To ease oil prices in the global market, the US has committed to release 50 million barrels of oil from its strategic petroleum reserves. The US currently holds 740 million barrels of oil in its SPR. This was necessitated after the OPEC refused to consider any output hikes pushing prices again close to the $80/bbl mark. It has also sought the cooperation of India, South Korea and Japan and India has agreed to release 5 million barrels from its SPR.

For India, lower oil prices can make a big difference as India relies on imports to meet 80-85% of its crude oil needs. In its list of imports, oil and gold remain major items contributing to the overall trade deficit.

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