Those familiar with the plan say President Joe Biden is preparing to release the country’s strategic oil reserves in coordination with several countries on Tuesday.
The move, in conjunction with India, Japan and South Korea, would be an unprecedented attempt to control prices after oil consuming countries. OPEC+ Reject US calls to significantly increase productivity. A few days after the US invited the Asian country to participate in a joint venture, China said it was trying to free up some oil from its strategic reserves.
The situation remains uncertain and plans may change, but one says the United States is considering releasing more than 35 million barrels over time. The forthcoming announcement was described by people who spoke anonymously before the official comments.
Representatives from the U.S. Department of Energy did not immediately respond to a request for comment. A White House spokesman said no decision had been made on the release, adding that the United States was in contact with other countries and several options were being considered to control prices.
The country has not yet determined the time and extent for the release of emergency oil reserves, but Indian government officials familiar with the plans said on Monday that it would be a joint venture with other major consumers such as Japan and China.
The Secretary-General of the International Energy Council, Joseph McMonnieck, said in a statement on Monday OPEC+ Consumer nations may change their plan to increase oil production if they sell off their oil reserves or their corona virus infection worsens.
Japanese television network TV Asahi on Monday announced that Tokyo was preparing to release crude oil from its domestic reserves. Japanese Prime Minister Fumio Kishida has said his government is considering releasing reserves in conjunction with countries such as the United States.
The integrated release would mark a diplomatic victory for the United States and challenge the control that Saudi Arabia, Russia and other OPEC + manufacturers have in the market.
Biden has been seeking a joint release for several weeks, including during a virtual summit with Chinese President Xi Jinping.
The move would represent the largest private drop in stored crude oil in key economies. Previous global efforts to use the reserves – 60 million barrels released in 2011 following the unrest and supply blockades in Libya – were coordinated by the International Energy Agency.
Biden is under increasing pressure to control rising energy prices, which threaten to undermine the economic recovery from the epidemic. OPEC + has already rejected the demand for a large production increase, instead increasing production to just 400,000 barrels a day in December.
The White House announced on Tuesday that Biden would fight the economy and inflation.
According to the AAA Federation of Automotive Associations, the national average price of a gallon of conventional lead gasoline is at a seven-year high of $ 3,409 on November 21.
The Organization of the Petroleum Exporting Countries and its allies will meet on December 2 to estimate an increase in production to 400,000 barrels per day in January.
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