Massive Release Of Strategic Oil Reserves A Geopolitical Statement - Indian Oil

The decision of several countries to release part of their strategic oil reserves in order to rein in prices, became a call for responsible behavior, which will affect the market, S.S.V. Ramakumar, director for research and development on the board of Indian Oil Corporation, told Sputnik on Wednesday

HOUSTON (UrduPoint News / Sputnik - 08th December, 2021) The decision of several countries to release part of their strategic oil reserves in order to rein in prices, became a call for responsible behavior, which will affect the market, S.S.V. Ramakumar, director for research and development on the board of Indian Oil Corporation, told Sputnik on Wednesday.

"In terms of quantity, probably whatever volumes that are released from the strategic reserves, it may not make difference in the overall energy consumption of these respective nations. But I think, to me, it appears that these nation want to make a statement. It is more geopolitical, it is more diplomatic, it is more a kind of posture," Ramakumar said on the sidelines of the 23rd World Petroleum Congress in Houston.

He noted that the decision would definitely have a psychological impact on the market.

"I feel it will be having some impact. (It) may not be quantitatively. But psychologically it will definitely have an impact that the consumers are not mute spectators. They are having a mind of their own and they are registering their thought if not protest, their thought that they can react. This is a resilience," Ramakumar said.

The top manager also noted that the decision to free up strategic oil reserves had been made not only by typical countries, but by the largest importers of black gold, such as India and China.

Ramakumar expressed confidence that in this way the importers had tried to urge the oil-producing countries to behave responsibly and to maintain a balance between price supply and demand. According to him, the decision is primarily aimed at making the oil price regime more comfortable.

"(So that) no opportunistic advantages to be taken from either side, whether it from the consumer side, or from the supplier side. This is a statement," he concluded.

The 23rd World Petroleum Congress kicked off Sunday in the United States amid the continuing fluctuations in the global energy sector. The event is one of the most representative oil and gas forums in the world. It has united over 5,000 participants from 70 countries, including energy ministers and representatives of the largest oil and gas companies. Delegates will discuss the development of the energy industry in the face of new challenges until December 9.

The event is being held in the Unites States for the first time in over 30 years. This year, Houston, which is often referred to as the "energy capital of the world", was chosen as the venue for the forum. The city is home to hundreds of oil and gas companies.

The last time that forum was held in the United States (also in Houston) was in 1987. The first World Petroleum Congress was held in London in 1933.