Crude oil price on a falling spree as US to release emergency oil reserve to control energy costs
- In an effort to bring down energy costs, the US is reportedly planning to release oil from its emergency reserves for the next six months.
- Reportedly, the US wishes to release up to 180 million barrels of oil over six months, which is the largest since the reserve was created in 1974.
- The commodity prices have fallen after a significant rise in
crude oil pricesfor the last one month after Russia invaded Ukraine.
AdvertisementCrude oil prices have been falling across the globe since the last couple of days as the US has released oil from its emergency reserve in an effort to control surging energy costs.
Reportedly, the White House has announced a record release of 1 million barrels per day from the Strategic Petroleum Reserve over the next six months — amounting to roughly 180 million barrels.
Besides, the US may also impose fees on US energy firms that sit on idle oil wells to make extraordinary profits from a supply crunch.
Crude oil prices have seen a significant rise for the last one month after Russia invaded Ukraine. Adding to the supply crunch fear from Russia, the recent COVID-19 wave that hit China has also surged the price. On April 1, the crude oil price stood at $99.90 per barrel.
Further, the volatility in crude oil may continue until Russia and Ukraine make peace considering Russia is among the world's largest crude oil exporters.
This is impacting the Indian economy adversely, as the country imports 80% of its oil needs and any rise in oil prices will increase the import bill.
Meanwhile, the country is facing high inflation across industries given fuel prices have risen after state elections even as oil prices across the world eased down. Petrol and diesel prices have risen after a four and a half month long hiatus to fill the huge gap with crude prices.
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