China collaborates in oil liberation, but independently

China’s ambiguity about its involvement in the US-led coordinated release of oil reserves is aimed at the domestic market to show that Beijing is not following Washington, according to government officials involved in the discussions.

The world’s largest oil importer is committed to extracting crude from its stocks alongside the United States, Japan, South Korea, India and the United Kingdom, the officials said, requesting anonymity.

The Chinese government wants to ensure that a release is seen as an independent measure, and that the Chinese population does not misinterpret the cooperation, as if it were taking orders from Washington, they said.

China said last week that it is preparing to sell oil from its domestic reserves, just days after a virtual summit between Presidents Xi Jinping and Joe Biden, at which the issue was discussed.

However, a spokesman for the Foreign Ministry appeared evasive when asked about the matter in a briefing on Wednesday. “China maintains close communication with relevant parties, including oil consuming and producing countries, to ensure stability in the long-term operations of the oil market.“, said.

China It plans to continue selling oil reserves, but it will do so according to Beijing’s schedule and may not be the same as that of the other nations, the officials said. China it is willing to coordinate with other countries, including the United States, to ensure that supplies and prices globally and domestically are stable, albeit independently and equitably, they said.

ChinaStill grappling with a power shortage as temperatures drop, it has already sold oil from its domestic reserves twice this year. In September, the agency that oversees the reserves held its inaugural public auction in which it offered 7.4 million barrels, the equivalent of less than a day’s worth of imports. The country also held a private sale of its reserves several months before the auction.

There has been no official word on how big the sale of China. Consulting firm JLC foresees the release of at least 7.3 million barrels, citing unidentified people familiar with the market. That volume would be relatively small given the size of China’s economy, compared to 50 million barrels in the United States and an estimated 10 to 20 million barrels in the other participating nations.