March 27, 2023

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Oil prices rise after US and other countries announce consolidated withdrawal from strategic reserves |  political news

Oil prices rise after US and other countries announce consolidated withdrawal from strategic reserves | political news

Oil prices rose on Tuesday, just hours after the United States and other strategic reserves announced a joint withdrawal to curb rising global prices, which have negatively affected consumers in the United States.

At the close of trading on Tuesday, the price of a barrel of Brent crude rose $ 2.61 (3.3%) to $ 82.31, while Texas crude rose $ 1.75 (2.3%) to $ 78.50.

The last recorded price is a one-week high, and it is at a 7-year high last October.

In recent days, the price of a barrel of Brent has reached $ 80, and expectations have been high as US President Joe Biden’s administration has pushed for a reduction in oil prices to curb the sharp rise in fuel prices in the United States. It could rise to $ 100 next year.

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

Integrated withdrawal

On Tuesday, the US president announced the use of strategic petroleum reserves in collaboration with several countries.

“Today I announce the release of most of our strategic oil reserves to recover from the crisis, and India, Japan, South Korea, the United Kingdom and other countries will release some of their strategic oil reserves, and China, and this will reduce the gap associated with the decline in production. Will help, “said Biden.

The White House says Biden has ordered the use of 50 million barrels of US strategic oil reserves, which exceed 600 million barrels, in a concerted effort with other countries, including China, India, Japan, South Korea and Britain. Suppress rising oil prices in world markets and push for greater oil production in the OPEC PLUS group.

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Biden attributed the unprecedented rise in world market prices to the refusal of oil-producing countries to increase production during this period.

He said he would look to federal agencies to find out the extent of the maneuvers and monopolies that have caused fuel prices to rise dramatically within the United States.

Energy Secretary Jennifer Cronhome said she hopes Biden’s decision to release an unprecedented amount of oil from the Federal Reserve will stabilize fuel prices.

He pointed out that he did not expect the price difference to be large, but stressed that Americans would see lower fuel prices in the coming weeks.

The impact of Python’s popularity on the U.S. market, which has recorded a sharp decline in recent times, has prompted Python to integrate with key oil consumers to use a portion of its strategic reserves to meet the needs of the petroleum system. The alliance of exporting countries “OPEC” (OPEC) and OPEC Plus – including OPEC members, Russia and other manufacturers – is increasing supply.

White House spokesman Jen Psaki said the U.S. administration had not ruled out any other measures to reduce fuel prices.

Zaki added that the Biden administration is in contact with OPEC member states, and that Washington wants OPEC members to take steps to increase supply, and that he expects OPEC Plus to comply with its earlier decision to increase production. 400,000 barrels per day.

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.”

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Coherent steps

Shortly after the White House announced the withdrawal of 50 million barrels of strategic oil reserves, 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.

For its part, it announced that it would allow UK fuel companies to pay 1.5 million barrels of oil shares to the market.

This morning, the Japanese Prime Minister said, “We will work with Washington to release some of our oil reserves without violating the law.”

The Japanese Prime Minister also promised to continue to put pressure on oil producing countries to control inflation.

Reuters quoted Japanese media as saying that Tokyo had decided to release 4.2 million barrels of oil from its reserves.

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

On the other hand, the Kremlin said that Russia was still committed to fulfilling its obligations at OPEC Plus, and that although large consumer countries talked about seeking its strategic oil reserves, President Vladimir Putin had no plans to contact his country’s partners in the group. .

Sources in the group of oil-producing countries, OPEC Plus, said that if oil-consuming countries continue, the group-states could adjust their production plans to allow them to increase production by more than 400,000 barrels a day for the next month. Procedures for utilizing strategic reserves of oil to reduce crude prices.

The OPEC Plus Group agreed last April to increase oil production by 400,000 barrels per month until production returns to its normal level before a significant reduction, which was recognized as a result of last year’s fall in oil prices. International spread of corona virus.

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According to sources, some OPEC Plus countries are not satisfied with seeking strategic reserves to be used in emergencies to reduce prices in global markets, and OPEC Plus countries plan to hold the next meeting. Week to discuss plans to increase production to 400 thousand barrels per day in December.

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