India is looking forward at storing low price US oil in facilities there as its local storage is full.
India is exploring some possibility if it can store some of the investment in a different country. It is exploring possibility in the US whether some low price oil can be stored.
India's plan could be similar to a move by Australia, which noted in April 2020 that it will build up an emergency oil stockpile initially by buying crude to store in the US Strategic Petroleum Reserve to take advantage of low oil prices.
Oil prices have dropped more than 40 percent so far in 2020, but have picked up in the past few weeks partly due to efforts by the organisation of petroleum exporting countries and allies to reduce supply.
The country has already filled its 5.33 million tonne of strategic storage and parked about 8.5 to nine million tonne of oil on ships in different parts of the world, primarily in the Gulf. Indian refiners have also filled their commercial tanks and pipelines with refined fuel and oil.
The stored oil and products amounted to around 20 percent of India's annual need. The country imports more than 80 percent of its oil requirements.
India plans to build new strategic storage to expand capacity by 6.5 million tonne and is also keen to have participation from global investors in building these facilities.