Introduction

Based on numbers from the Petroleum Ministry of India, by 2025, almost 88% of the crude oil needed in India will come from imports from foreign countries, an increase from previous years. India's population and manufacturing and aviation sectors are growing, so the oil demand is increasing. Whenever there is a change in the global price of crude oil, it not only impacts the pumps that provide petrol, but it also filters down to costs in transportation and other consumer goods, even the strength of the rupee versus the dollar and what that ultimately means for your purchasing power.

Understanding Crude Oil Inventory Data

As the bullish nature of crude oil inventories and the effects on the stability of world oil reserves change, inventory refers to unrefined petroleum stored in tanks, pipelines, and tankers on ships. This data measures oil stored in millions of barrels and represents the supply and demand balance. Conversely, an increase in the abundance of inventories usually indicates high "stockpiles" of oil in the marketplace. There is the opportunity for prices to be impacted negatively as sellers will have to sell oil competitively. Low inventories tell buyers that supplies are tight concerning reserves, and the cost of crude oil is most likely increasing and continuing to increase with a high demand for oil as buyers scramble. For India, the increased demand for oil and its estimation to continue until 2025 means consumers will have to face price increases not only of the fuels to drive the cars, but also goods, even food, just to pay for importing oil for the favourable rates that are available.

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How Inventory Data Are Tracked Globally

You may not know how much the world tracks crude oil inventories. The United States, as a key influencer in global oil prices, releases inventory data through weekly reports from the Energy Information Administration (EIA). For example, in early August 2025, the EIA issued a surprise build of 3.2 million barrels in inventories, when most expected a decrease. The American Petroleum Institute also publishes weekly inventories, and the International Energy Agency publishes monthly inventory data for 37 developed nations. These weekly and monthly reports are critical because they establish global benchmarks such as Brent and West Texas Intermediate, which India uses to settle oil prices.

Impact on India's Economy

Crude oil inventory reports impact the import cost of crude oil when global inventories increase, either by increasing production or decreasing demand. For instance, in the middle of 2025, production was just below a million barrels a day as Brent pricing dropped to around $67. While lower prices can create cheaper fuel and products because refiners are getting cheaper prices, price spikes occur when stocks fall, generally due to higher demand or supply disruptions such as storms. This is the point at which you start paying more for diesel, petrol and energy, which can all be a driver of inflation as this affects the costs of stuff, namely the cost of those things manufactured using those fuels like chemicals, paints and airlines.

Beyond Price: The Effect of Inflated Costs and Currency

The increasing crude oil price is more than the price at the pump. Increased production and logistics costs are passed on as higher prices to everyday products. Inflation sets in, and when crude oil prices rise, the country's currency is often affected and weakens in value against the US dollar. Therefore, the government pays much, much more for the dam oil. Let's say that every barrel price increases by only $5. When India buys crude oil (from Canada, for example) at $60 a barrel versus $65 a barrel, that's a good day for the Indian currency. A $5 price increase in crude oil could cost India billions and billions more dollars to keep buying crude oil. Budget constraints become a reality for governments, and deficits widen. And for you, higher prices for groceries and flights increase service prices and impact your household budget.

Conclusion

Monitoring crude oil inventory information is powerful. A weekly or monthly EIA crude oil report can help indicate whether prices will likely rise or fall. Knowing this allows investors to time their energy-focused funds or stocks prudently. Knowing current inventory levels and fuel budget during low-inventory and high-price times will help consumers.

Floating storage trends have risen recently, but many major crude oil hubs are still below historical averages, revealing uncertain inventory levels moving forward. Knowledge is power, and knowing this information means knowing when and possibly how these fluctuations occur in India's crude oil market.

To sum it up, crude oil inventory data provide more than just numbers; they provide insight into possible equities you can own.

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