China to release crude oil from its strategic reserves around the Lunar New Year holidays as part of a coordinated effort by the US and other major consumers to reduce global prices.
- China agreed in late 2021 to release an unidentified amount of oil subject to the price levels. Beijing agreed to release a larger amount if the oil price is above $85 per barrel and a smaller volume if the oil price averages around $75 level.
- The release of crude stockpiles by China will take place around the Lunar New Year. The Chinese economy will be closed for the most significant yearly holiday from January 31 to February 6.
- The agreed resolution by China comes after a series of discussions that the Biden administration held with other major oil consumers after low supplies pushed global oil prices to multi-year highs.
President Biden and senior officials discussed the possibility of a coordinated release of crude oil stockpiles with close allies, including Japan, India, South Korea, and China.
CL1! Up +0.07%, USOIL up +0.84%Source: Reuters