WASHINGTON: The United States, India, Japan and South Korea acted in concerts on Tuesday to release oil from their respective strategic oil reserves to combat high prices originating from major oil exports countries that did not increase the production of busy holiday seasons.
In what the first coordinated action was like that, the White House announced that the Department of Energy would release 50 million barrels of oil from the country’s strategic oil reserves.
At the same time, India is committed to releasing 5 million barrels from the reserve to start.
Quantum releases from Japan and South Korea are not immediately known.
China has also been invited to join the group but has not responded so far.
England is also expected to join.
The price of gas is at seven years in the US and Biden administration takes a lot of heat for him from the Republican Party for whom it is a strong political weapon.
The average gas price throughout the country is around $ 3.40 per gallon (around Rs 70 per liter), but in some parts of California it is more than $ 5 per gallon.
Biden is scheduled to give a speech today today about the economy, including “reducing prices for the American people,” in the midst of anxiety throughout the country and inflation.
“American consumers felt the impact of the increase in gas prices at the pump and in their home heating bills, and the American business as well, because the supply of oil has not followed demand because the global economy emerged from a pandemic.
That’s why President Biden whether using every tool available for him to work to reduce Prices and overcome the lack of supply, “the White House said in a statement in front of the speech.
The crisis currently has its origins in pandemic, during the early days of falling oil demand, oil-producing countries cut production to keep prices stable.
Demand since it ticks with fading pandemic and increased travel and trade, but called OPEC +, which includes major oil-producing countries and Russia, has returned a call to increase output.
It is unclear, much more confidential, how many releases from strategic reserves will help reduce prices, given the amount released almost does not occur on several days of use.
The US burns nearly 20 million barrels per day.
Coordinated steps are considered to show purposes.
This is also the first time India and the US have acted in concerts in this matter even though New Delhi is closely with oil producers in its environment.
The two countries signed a preliminary agreement in July last year to work together on emergency crude reserves, including allowing India to store petroleum in US emergency stockpiles leased.