United States America –
On Tuesday, the United States
Announced to release millions of barrels of oil from its strategic reserves in coordination with India, South Korea, Japan, China, and Britain. The US is trying to cool prices after Opec+ producers have repeatedly ignored calls for more crude.
Joe Biden has been facing low approval ratings due to rising inflation ahead of next year’s congressional vote. The US President has grown frustrated by asking the Opec+ to pump extra oil and not getting any response. Opec+ stands for Organisation of the Petroleum Exporting Countries and its associates.
It merits mentioning that crude oil prices have recently touched their seven-year high. Although they are short of levels reached between 2012 and 2014 – $100 a barrel – consumers are feeling the pain of a sudden increase from a year ago.
Biden’s announcement means a release of 50 million barrels – which is equivalent to about two and a half days of Washington’s demand. Britain has said that it would allow the release of 1.5 million barrels from privately held reserves. India, on the other hand, said it would release 5 million barrels.
According to media reports, details on the amount and duration of the release of oil from Japan, South Korea, and China were not revealed. Seoul said that it would decide its course after deliberations with the United States and other allies. Meanwhile, Tokyo will detail its plans today (Wednesday).
Opec+ includes Saudi Arabia, Russia and numerous US allies in the Gulf. The body has rebuffed requests to squeeze out more at its monthly meetings. Opec+ will meet again on Dec 2 to talk about the policy and has not shown any indication so far that it will change tack.
As per experts, the group has been failing to meet existing targets under its commitment to increase production by 400,000 barrels each day gradually.