India to fortify oil hoard as prices could spike

As global oil markets brace for fresh volatility amid tightening supplies from a big oil grouping and impending US sanctions on Russian majors Rosneft and LUKOIL, India is quietly moving to fortify its energy security architecture.

- Rituraj Baruah

Crude prices surged to a high of $76 per barrel in June.

(AP)

With Brent crude trading subdued, below $65 per barrel, and with anticipation of increase in prices due to tightening supplies, India is looking to seize the moment to refill and expand its strategic petroleum reserves, two people aware of the development said. Crude prices had surged toa high of $76 per barrel in June, froma four year low of $60 per barrel in May.

“There is an effort to boost the reserves in order to ensure energy security as prices are relatively lower now,’ the first person cited above said on condition of anonymity, “Although availability of oil is not a matter of concern for India, prices are likely to increase going ahead.”

The second person added that in the past few months, the governmentand the Indian Strategic Petroleum Reserves Ltd (ISPRL) have already been making efforts to fast-track procurements for the strategic reserves.