The United States is determined to make a difference in the global oil market. The US administration announced it would sell 18 million barrels of oil from the Strategic Petroleum Reserve (SPR).
According to the website of the US Department of Energy (DOE), the agency will make the first 18 million barrels of oil available from the SPR as one of the measures to reduce the supply deficit in the market. In addition, the DOE will exchange 4.8 million barrels of oil for release to Exxon Mobil. The agency also said it will accept and approve exchange requests from all interested parties to address supply disruptions. The US administration was urged to sell oil from the Strategic Petroleum Reserve to satisfy demand from the US population and stabilize fuel prices.
Earlier, President Biden announced the release of 50 million barrels of oil from the SPR. China, India, Japan, South Korea, and the United Kingdom also made a decision to use their national strategic reserves. Biden has repeatedly called on OPEC+ to pump more oil to reduce prices. However, the cartel fears such a move could hurt demand amid risks of possible new waves of COVID-19 and lockdowns.
