USA: They throw 50 million barrels of crude oil on the market from strategic reserves

LAST UPDATE: 15.15

The United States is set to release 50 million barrels of crude oil from the country’s strategic oil reserves to help normalize fuel prices, the White House said on Tuesday.

The oil that the US will release from its strategic reserves will reach the market in mid-late December, as senior officials of the Biden government stressed.

The release will be in the form of a loan and sale, while the US officials added that the decision of the White House was taken in the context of coordinated movement of other large consumer countries that will also release part of their strategic stocks, such as China, India, South Korea, Japan and Britain.

U.S. officials also said, according to Reuters, that this was the first time the United States had coordinated the release of strategic crude stockpiles with some of the world’s largest oil consumers.

THE India It also announced that it would release 5 million barrels of oil from its strategic reserves.

The release of the 5 million barrels will be done in parallel with consultations with other major energy-intensive countries of the world, such as the USA, China, Japan and Korea, the government said, without specifying the timetable for this move.

“India has repeatedly expressed concern that oil supply is being artificially adjusted below demand levels from oil-producing countries, leading to rising prices and negative consequences,” the government said in a statement.

The move is a success for US President Joe Biden and is seen as a warning to the OPEC + cartel, which, despite repeated calls from the United States to increase oil production to meet rising prices in many major economies, is moving very cautiously. to increase the supply under its plan to increase production by 400,000 barrels per month.