The corresponding agreement was reached at the end of 2021.
China has agreed with the United States that it will release some of the oil from its strategic reserves around the time of the celebration of the Chinese New Year, which will fall this year on February 1. This was reported on Friday by Reuters, citing sources.
According to them, a corresponding agreement was reached at the end of 2021. The amount of oil that Beijing plans to release is not specified, but it is known that it will depend on the level of energy prices. So, at a price over $85 per barrel, we are talking about releasing larger volumes, and if oil costs about $75, then the volumes will be lower.
Last November, U.S. President Joe Biden decided to use 50 million barrels of oil from the country’s strategic reserves. As noted in the White House, this is being done in order to reduce fuel prices for Americans and stabilize supply and demand in the global market after the pandemic. The US authorities said that a number of other countries, including the UK, China, India, South Korea and Japan, will take a similar step.