US, India take on OPEC: Coordinated release of oil to tame prices

In an unprecedented move US will release crude oil from it's strategic reserve along with other major energy consuming nations, including India, Japan, Republic of Korea, China and the United Kingdom to cool prices.

The move comes as fuel prices across the globe continues to hover around 7-year high and alliance of oil producing nations - OPEC rebuffed repeated requests to speed up their production increases.

In total the U.S. will release 50 million barrels from the strategic petroleum reserves (SPR). Simultaneously, India has also announced that it has agreed to release 5 million barrels of crude oil from its SPR. India stores about 38 million barrels of crude oil in underground caverns at three locations on the east and west coast.

The ministry of petroleum said India strongly believes that the pricing of liquid hydrocarbons should be reasonable, responsible and be determined by market forces.

"India has repeatedly expressed concern at supply of oil being artificially adjusted below demand levels by oil producing countries, leading to rising prices and negative attendant consequences," it said.

This is the first time ever that India, which stores 5.33 million tonnes or about 38 million barrels of crude oil in underground caverns at three locations on the east and west coast, is releasing stocks for such purposes.

India is the world's third-largest oil consumer and importing nation and has been severely impacted by the relentless rise in international oil prices.

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