It is a strategic movement in which countries such as China, Japan, the United Kingdom and South Korea will also participate.
The president of the United States, Joe Biden, announced this Tuesday that the Department of Energy will release 50 million barrels of oil from the country’s Strategic Petroleum Reserve in order to reduce prices and address the mismatch between demand and supply in a coordinated move with other major oil consumers such as China, Japan, the United Kingdom and South Korea.
Specifically, 32 million barrels will be made available over the next few months through the exchange mechanism, thus releasing a volume of oil that will eventually return to the Strategic Petroleum Reserve in the coming years automatically, while another 18 million barrels will correspond to an acceleration in the coming months of the sale of oil that Congress had previously authorized.
As reported by the White House, the measure will be taken in parallel with other major energy consuming nations, such as China, India, Japan, South Korea and the United Kingdom, thus culminating weeks of consultations with countries around the world, which has resulted in a fall in prices of almost 10% since the reports on the matter began to be made public in recent weeks.
However, the historic decision of the United States to release a part of its strategic oil reserves has not had the expected response in the markets, where the price of a barrel rose almost 2% after the White House announcement due to fear of the reaction that producing countries may adopt.
Thus, the price of a barrel of Brent crude, a reference for Europe, which was trading slightly above $ 78 this Tuesday, reached $ 81.25 after the US announcement, with an increase of 1.94% compared to the close of Monday.
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
