Experts Say That The Release Of Strategic Crude Reserves Is Not Enough To Cool Down Fuel Prices

Experts say that the release of strategic crude reserves is not enough to cool down fuel prices

New Delhi, Nov 25, : .India’s decision to remove 5 million barrels from its strategic reserves of crude oil may not be enough to curb rising fuel prices, analysts suggested.
To counter rising prices, a few countries have released crude oil from their strategic reserves in recent years.India will also release 5 million barrels from its strategic petroleum resources.

 Experts Say That The Release Of Strategic Crude Reserves Is Not Enough To Cool D-TeluguStop.com

Experts say that this release from reserves won’t serve the purpose.

Technically, strategic reserves are underground stores that contain a large portion of a country’s fuel needs to meet its demand in the event of an emergency or crisis.

Global benchmark crude oil currently trades at $82 per barrel.

“The news of the release from strategic reserves of crude oil has been discounted by the market.Prices fell by $8-10.However, this will not be enough to stop rising global fuel prices,” stated Sriram Iyer analyst at Reliance capital.

Iyer said that the US, China and Japan combined released approximately 70-80 million barrels of crude oil from strategic reserves.The market expected it would be 100 million barrel.

Analysts also pointed out that the market will be keeping a close eye on the OPEC+ meeting, which would decide production guidance.The meeting is expected to take place in early December.

“The market will react to the decisions made at the meeting.” Iyer stated that overall, however, bullish sentiment is still present.

He said that Brent crude oil resistance is expected to be at $85-87 a bar, while New York Mercantile Exchange futures are at $83-85 a bar.

“The announcement about strategic reserves is a diplomatic move to pressure OPEC+ members ahead of their meeting.Ajay Kedia Head of Kedia Advisory said that strategic reserves are usually for emergencies and that price fluctuations are not considered an emergency.

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