Joe Biden poised to unleash oil reserves with other nations as early as Tuesday
OPEC hints it might tighten crude supplies in response
President Joe Biden is preparing to announce a release of oil from the nation’s Strategic Petroleum Reserve in concert with several other countries as soon as Tuesday, according to people familiar with the plan.
The move, likely in conjunction with India, Japan and South Korea, would be an unprecedented effort by major oil consumers to tame prices after OPEC+ countries rebuffed U.S. calls to significantly boost production. China said it’s working to release some oil from its strategic reserves, days after the U.S. invited it to participate in a joint sale.
The situation remains in flux and the plans could change but the U.S. is considering a release of more than 35 million barrels over time, according to two of the people. The pending announcement was described by people who requested anonymity prior to official statements.
The move would pit the countries against the OPEC+ coalition — led by Saudi Arabia and Russia — for control over world oil markets and could prompt OPEC and its allies to re-evaluate plans for reviving oil supplies.
Indian government officials with knowledge of the plans said Monday that the nation has yet to decide on timing and volume of releasing emergency oil stocks but that it will be a coordinated step with other major consumers such as Japan and China.
Japan’s TV Asahi reported Monday that Tokyo is preparing to release crude from its national stockpiles. Japanese Prime Minister Fumio Kishida had said his government was considering a release from reserves in coordination with countries such as the U.S.
“The Strategic Petroleum Reserve — that is available to be released in times of national emergency and when the President thinks that it might need to be done,” Heather Boushey, a member of the White House Council of Economic Advisers, said Monday in an interview on Bloomberg Televison’s “Balance of Power With David Westin.”