According to foreign media reports, on November 23 local time, US President Biden announced the release of 50 million barrels of oil reserves in an attempt to cool the crude oil market. Britain, South Korea, India, Japan and other countries followed suit and announced their participation in this coordinated action.
Foreign media reported that the United States seeks to jointly release oil reserves with major oil consuming countries such as India, South Korea, Japan and the United Kingdom. A senior official in the Biden administration said: “This is the first time we have similar cooperation with other major energy consumers.”
Biden said that this is the largest release of oil reserves in the history of the United States, but the government’s move “will not solve the problem of high oil prices overnight” and the released oil reserves will enter the market in a few weeks.
South Korea is expected to release 4% to 5% of the country’s total oil reserves
The South Korean government announced on November 23 that it would participate in the joint release of oil reserves proposed by the United States. The South Korean government stated that after consultations with the United States and other countries, the specific release scale, time and method will be determined. It is expected that the release scale will be the same as the previous international cooperation between South Korea and the International Energy Agency (IEA). In 2011, the South Korean government released 4% of the national oil reserves in accordance with the requirements of the International Energy Agency, reaching 3.467 million barrels.
Analysts believe that South Korea is expected to release 4% to 5% of the country’s total reserves this time. South Korea’s crude oil reserve management regulations stipulate that the government can release oil reserves for the purpose of international cooperation or in the domestic oil supply and demand problems. According to data from the Korea Petroleum Corporation, as of the end of August this year, nine oil storage bases in Korea had a total of 97 million barrels of crude oil, which could be used in the country for 106 days. Recently, a South Korean government official stated that South Korea’s domestic oil reserves can meet the standard set by the International Energy Agency for more than 100 days of domestic consumption, so the release of oil reserves will not affect domestic oil supply in emergency situations.
Japan may release 4.2 million barrels of national oil reserves
Japanese Prime Minister Fumio Kishida said on November 24 that Japan will release its national oil reserves in an attempt to reduce oil prices. This will be Japan’s first release of national oil reserves. Japanese media reported that Japan had released oil reserves from private institutions during the Gulf War and Japan’s 3.11 earthquake. So far there has been no precedent for releasing national oil reserves.
“Japan has decided to cooperate with the United States to sell part of its state-owned stocks in a way that does not violate the Petroleum Storage Law.” Kishida Fumio said, “The stability of crude oil prices is a very important factor in promoting economic recovery from the new crown pneumonia epidemic.”
Japan’s oil reserve law only allows the release of oil reserves in response to disasters and political turmoil. Japan’s oil reserves target is the country’s 160-day oil consumption. Japanese media reported that Japan will release about 4.2 million barrels of national oil reserves. This amount is only equivalent to Japan’s oil consumption in a few days.
India has agreed to release 5 million barrels of oil reserves
US media reported that India has agreed to release 5 million barrels of oil reserves, roughly equivalent to the country’s daily oil consumption. After the White House issued a statement on the release of oil reserves, the Indian government stated that oil-producing countries adjusted the level of oil supply to a situation where supply is in short supply, which led to an increase in oil prices and brought corresponding consequences.
Britain will allow companies to release about 1.5 million barrels of oil reserves
The British government said in a statement that the country will allow companies to “voluntarily release” about 1.5 million barrels of oil reserves. This is a wise and prudent measure taken by the country to support the global market while trying to get rid of the new crown epidemic.
A spokesman for the British government said that they will work closely with international partners to do their best to support the global economy through the transition period after the new crown epidemic.
A report released by the U.S. Energy Information Administration on November 24 showed that the average price of regular gasoline in the United States on the 22nd was $3.4 per gallon (approximately 3.79 liters), the highest price on Monday of Thanksgiving week since 2012, an increase over the same period last year. 62%. At the same time, the number of people traveling by car on Thanksgiving this year will increase. According to data provided by the American Automobile Association, more than 48 million people are expected to drive out on Thanksgiving Day, an increase of 8% year-on-year. On Thanksgiving 2020, many people will stay at home due to the new crown epidemic. The price of gasoline in the United States is now 32% higher than that of Thanksgiving 2019.
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