Friday, June 21, 2024

Biden releases about 50 million barrels of strategic oil reserves. What about other countries? | Economy



The White House announced Tuesday that President Joe Biden has ordered the use of 50 million barrels of US strategic oil reserves in a concerted effort with other countries, including China, India, Japan, South Korea and Britain. Oil prices in global markets and pressure on oil-producing oil nations to grow. OPEC Plus must increase its production.

Following the White House announcement, India announced that it would release 5 million barrels of its strategic reserves in conjunction with other buyers, including the United States, China, Japan and South Korea.

China has already announced its readiness to use its strategic reserves after inviting the United States to join the operation.

And early Wednesday morning, the White House said, “We have made it clear that our intention is for oil-producing countries to take action to increase supply.”

On the other hand, the Kremlin said that Russia was still committed to fulfilling its obligations at OPEC Plus, and that while talking about the resort of key consumer countries for its strategic oil, President Vladimir Putin had no plans to contact his country’s partners in the group. Reserves.

Sources in the group of oil-producing countries, OPEC Plus, said the group-states could modify their production plans to allow oil-consuming countries to increase production by more than 400,000 barrels a day next month if they continue to practice. Uses their strategic oil reserves to lower crude prices.

The OPEC Plus Group agreed last April to increase oil production by 400,000 barrels per month, which was recognized last year as a result of falling oil prices at the peak of a growing corona, until production returns to its peak before a significant reduction. Viral infection.

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According to sources, some OPEC Plus countries are not satisfied with consumer countries seeking strategic reserves to be used in emergencies with the aim of lowering prices in global markets, and OPEC Plus countries are planned. A meeting is scheduled for next week in December to discuss plans to increase production to 400,000 barrels a day.

After Python’s announcement, oil prices fell, and US West Texas crude futures fell $ 1.38 or 1.8 percent to $ 75.37. Brent crude oil fell 42 Cents or 0.5%, $ 79.28 a barrel.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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