The sharp rise in oil prices intensified U.S. inflation, and the U.S. is committed to wooing countries to act together to reduce oil prices.
The United States issued a rare request earlier, hoping that countries will take coordinated action to reduce global energy prices before the Organization of Petroleum Exporting Countries and its oil-producing allies meet next month. Some of the world’s major economies, including the United States and China, said Thursday (November 18) that countries are considering releasing strategic oil reserves.
White House spokesman Psaki said Thursday (November 18) that the United States has discussed the possibility of jointly releasing oil reserves to meet fuel demand with China and other countries.
In answering questions, Psaki said that members of President Biden’s national security team participated in the discussion. She said, “This is an ongoing discussion between us and some partner countries.”
According to the report, this is the first time that the Biden administration has asked major oil importers such as India, Japan and China to consider releasing crude oil reserves. This is also the first time that China, the world’s second largest oil consumer and largest oil importer, will release crude oil reserves in concert with the United States. .
After Reuters reported that the United States made a request and China decided to release its oil reserves, oil stock prices fell.
China’s State Bureau of Grain and Material Reserves said it was working to release crude oil reserves, but declined to comment on the US request. It is unknown whether China will fully cooperate with the United States in this field.
The United States is the world’s largest oil strategic reserve country, with more than 600 million barrels of oil reserves. The development of shale oil in recent years has brought U.S. oil production close to Saudi Arabia and Russia, reducing the U.S.’s dependence on oil imports.
Members of the Organization of Petroleum Exporting Countries have not yet made a formal response to this. The organization has been slowly increasing oil production at a rate of 400,000 barrels per day, and has gradually cancelled oil production cuts following the decline in fuel demand caused by the new crown epidemic in 2020. The Organization of Petroleum Exporting Countries and its oil-producing allies will hold a meeting on December 2.
Several major energy-consuming countries in the world have asked the Organization of Petroleum Exporting Countries to increase production. China chose to release oil reserves in September in an attempt to stabilize oil prices. India has also expressed dissatisfaction over the past few months, and sharply reduced Saudi Arabia’s oil imports in the spring due to higher prices.
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