The amount of reserves is unlikely to ease the demand of the world

Try to put pressure on OPEC nations

The amount of crude oil released by leading countries is equal to one or two days' consumption: experts

AHMEDABAD: Crude oil prices, however, are unlikely to fall sharply after the release from these reserves as the amount to be released does not make much difference to the world's needs. It is possible that the market will see a stabilization again after a slight rebound in prices.

The demand for crude oil in the world came to a complete standstill during the Corona, with transportation, shipping, airlines all shutting down and crude oil prices plummeting at one point. But now global crude consumption has reached 80 million to 100 million barrels. Against this the US, Japan, China (if agreed) would be about 100 to 120 million barrels.

This amount is equal to the total daily consumption of the world, so there is no shortage of supply in the market. This is likely to be a sign that OPEC's December meeting on production and supply will push the crude oil cartel to increase production.

The United States set up a strategic crude oil reserve in 1975 after the Iran crisis. The United States has 600 million barrels of crude oil on hand, of which President Joe Biden could announce the launch of 45 million to 60 million barrels of crude oil. The International Energy Agency estimates that this decision will take about 13 days to reach the market.

The United States has not released any of these reserves in the domestic market in so many years, except during the 1991 Gulf War and Hurricane Katrina in 2005. Japan has 175 million crude oil reserves and is expected to release about 20 million barrels. According to Citibank, the world's top bank, all countries combined are likely to put about 100 million barrels of crude oil on the market, which is equivalent to the world's total one-day consumption.