India has bought the first oil for its strategic petroleum reserve. This is the first of a round of purchases by the world’s fourth-biggest oil consumer to build up emergency reserves.
Report show that Indian Oil Corp bought a 2 million barrel supply of Iraqi crude from Chinese trader Unipec.
Although the country’s supply amounts to less than 10% of the daily demand, the country’s purchases could increase later this year as they complete construction of the next phase.
Two strategic petroleum reserve sites, at Padur and Mangalore, will have a capacity of 29.3 million barrels and are expected to be ready by October.
India’s fast growing economy has become the world’s fourth-largest oil consumer after the US, China and Japan.