US officials have been working with their counterparts in other countries on a combined release of oil from the world’s strategic crude reserves, two sources said, with one adding that the plan is in the “early stages.”
Prices of Brent crude, the international benchmark, soared above $105 a barrel after Russia’s attack on Ukraine, accelerating inflation as demand for fuel recovers from the pandemic.
“We are exploring through the IEAone of the sources said, referring to the Paris-based International Energy Agency, which this week said it is ready to tap into reserves. “We’re on day 1 (of the Russian attacks), so we’re still working on the schedule, etc.”, for the release of oil, the source said.
The IEA did not immediately respond to a request for comment.
The plan would come on top of a coordinated release of reserves with Asian consumer countries organized by Washington in November to combat energy inflation. So far, the United States has been the country that has released the most crude from its Strategic Petroleum Reserve after the agreement and China has largely refrained from releasing part of its reserve.
It was not immediately clear whether IEA-affiliated China was involved in the scheme.
The White House National Security Council did not immediately respond to a request for comment.
Japan and Australia said on Thursday they were prepared to draw on their oil reserves, along with other IEA member countries, if world supplies were hit by the Ukraine invasion.
Total oil reserves in IEA countries stood at about 4.16 billion barrels at the end of December, including 1.5 billion held by governments in the form of emergency reserves, the agency reported this week.
Source: Gestion
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