Due to the deadly effect of COVID-19 cases throughout the world and the rise in the number of death in the whole world, the world economy is now facing a slowdown. As a result, all the sectors and industries are in a less productive mode. This has created a tremendous impact on the Crude Oil Markets and Crude Oil Price also. The Crude Oil prices (Brent Oil Price) in the International markets have also seen much decline in the demand as well as in the supply also.
As we know the price of crude oil has crashed and traders are selling oil on the price of below $0. So, here a question arises for a country like India, that will it impact its economy and can India buy Crude Oil at a much lower price? Let’s analyze
Crude Oil news one by one through deep discussion.
Due to coronavirus and its effects, India has a chance to purchase oil for future use. But due to less Strategic Petroleum Reserve (SPR) capacity, the country could not make the use of this golden opportunity of lesser oil prices.
India is the third-largest consumer of oil in the world. And this was the chance but we missed the opportunity due to less SPR, Asia’s third growing economy country has only 39 million barrel capacity and only half of the storage is filled.
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As per records, India has only 4 strategic crude oil storage Mangalore, Visakhapatnam, Chandikhol, and Padur. Padur and Chandikhol are under construction and not in the condition to store oil now. So it is impossible to purchase extra oil as there are not limited SPR.