US EXCLUSIVE asks Japan, China and others to consider tapping oil reserves

An oil storage tank and a crude oil pipeline equipment is seen during a tour of the department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, USA June 9, 2016. REUTERS/Richard Carson

WASHINGTON, Nov. 17 (Reuters) – The Biden administration has raised a number of questions of the worldThe largest oil-consuming countries consider releasing some crude oil reserves in a coordinated effort to lower prices, according to several people known with the matter.

Global oil benchmarks down in post-close to trading on the news. At the end of October, prices reached seven-year highlights as oil demand has nearly recovered to pre-pandemic levels, faster than the pace of delivery.

President Joe Biden has faced political pressure over gasoline prices die have risen since his election in November 2020, a time when commuting and travel were drastic reduced during the pandemic. heads of government in Japan and other consume countries face comparable pressures.

The organisation of the oil exporting countries and related producers, led by Saudi Arabia and Russia, have added 400,000 barrels per day to the market on monthly but resisted Biden’s calls this month for steeper elevations. read more

In recent weeks, Biden and top aides have issue with close allies, including Japan, South Korea and India, as well as with China, the sources said. Tokyo responded positively to the emergency response, according to one of the sources.

An of the sources, asked why India was included in the party of countries since it’s only one small spare, said “We got it over the symbolism of the largest consumers of the world send a message to OPEC that ‘you have your . need to change behavior.'”

Multiple people known with the case warned that such negotiations have not yet been concluded, nor final decision been made over whether or not to follow a particular course of action on oil prices.

The White House declined until comment on the detailed content of conversations with other countries. “New decisions have been madesaid a spokesperson for the White House National Security Council.

The White House has said: for weeks that it “talk” with other energy consumers to ensure global energy supply and prices bring the global economic recovery, the spokesman added. “There is nothing to report other than ongoing talks and we consider a range of tools for if and when action is needed.”

The United States share of every possible release of reserves could be more than 20 to 30 million barrels, saying it took a lot to make a effect on markets, according to a US source who participated in the discussions. The release could be: in form of a sale of a loan from the SPR – of both.

After Reuters reported on the discussions in the White House, was U.S. crude oil trading at $78.18 after closing at $78.36 a barrel, while Brent fell to $80.21 after finishing at $80.28 a barrel. prior to the news, both American raw and global benchmark Brent recorded their lowest settlement prices since begin October, with Brent down 1.7% and US Crude Oil down 3% for day.

OPEC and allies were wary of drastically increase the output, concerned the rebound in demand could be vulnerable and additional supply could overwhelm the markets.

“The surplus is already begin in December,” said OPEC Secretary General Mohammad Barkindo on Tuesday, when asked of he… sure there would be an excess in oil delivery next year.

“These are signs that we need to be very, very careful,” he told reporters. read more

Rising oil prices annoy Biden ahead of the 2022 midterm elections die will determine of are Democratic party maintains its small majority in the US Congress.

Several Biden aides attribute his fall public approval ratings in recent months to a worsening inflation of energy to food and other areas. The consumer price index is up 6.2% over the last 12 months, with its energy components up 30%.

US gasoline prices are now $3.41 a gallon, according to AAA, more than 60% higher than a year ago as the economy has recovered from the COVID-19 pandemic.

It in Paris-based International Energy Agency, an energy watchdog that also includes some of the largest consumers of oil, including the United States, Japan and many European countries, did not comment. the IEA in the past has coordinated releases involving multiple countries.

“The IEA keeps the oil in the holes” market closely in the holes and is ready to act if necessary,” it said in a statement.

Reporting by Trevor Hunnicutt, Jarrett Renshaw and Tim Gardner; Additional reporting by Valerie Volcovici and Noah Browning; Editing by David Gaffen, Heather Timmons and David Gregorio

Our standards: The Thomson Reuters Trust Principles.

Read More: World News

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