A group of nations led by the United States is attempting to challenge the all-powerful OPEC cartel in the oil market. The US, Japan, South Korea and India plan to release oil reserves in tandem in an attempt to drive prices lower.
The US Department of Energy is expected to announce a loan of oil from the Strategic Petroleum Reserve on Tuesday, which will be coordinated with other countries, a Biden administration source familiar with the situation, said.
India is likely to release about 5 million barrels of crude oil from its emergency stockpile. India stores about 38 million barrels of crude oil in underground caverns at three locations on the east and west coasts.
In an interview to CNBC-TV18, Vandana Hari of Vanda Insights, said, "OPEC is very determined for the past several months to keep the markets slightly under-supplied. According to their projections, 2022 is going to be a year of surplus which means prices will be pressured lower. So, they have been very dedicated to 4,00,000 barrels per day monthly increment. So, I wouldn't be surprised to see OPEC responding if there is indeed a substantial release by these countries."
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