China agrees with US to release oil reserves

According to Reuters, China will release oil from its national strategic stockpiles during the Lunar New Year holiday, which begins on February 1, as part of a strategy to cut global prices coordinated by the US and other big customers.

According to specialists, the two largest oil consumers agreed to release an undisclosed amount of oil in late 2021, contingent on price levels.

“China has agreed to release a significantly higher amount if the price of oil is above $85 a barrel, and a lower amount if the price gets closer to $75,” one source said without providing further details.

Brent oil prices were operating above $85 a barrel on January 14th.

China’s oil stocks will be released around the Lunar New Year. From January 31 to February 6, China will be closed for the most important annual holiday.

China’s agreed-upon reserve release is the outcome of a series of talks between the Biden administration and other major oil consumers, as reported by Reuters in November when limited supplies drove global oil prices to multi-year highs.

Source: Money Times

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https://www.moneytimes.com.br/china-acerta-com-eua-liberacao-de-reservas-de-petroleo-dizem-fontes/

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