Biden is ready to release more oil reserves and lower prices: Amos Hochstein

On November 3, 2021, a truck passes through a pump jack at the Bellridge Oilfield near McKittrick, California.

Mario Tama | Getty Images News | Getty Images

President Joe Biden’s administration is ready to release more oil from its strategic reserves in the event of a renewed need, according to the US State Department’s Senior Advisor to the World Energy Security.

“Of course, this is a tool we have available and will be available again,” Amos Hochstein told CNBC’s Hadley Gambling in Dubai, United Arab Emirates on Monday.

His comments are made when energy analysts assess the validity of US-led pledges. Release millions of barrels of oil from strategic stockpiles OPEC + producer Resisted call Use more pumps to cool the market.

“Remember that this wasn’t a 50 million barrel release. 30 million barrels was an exchange where businesses and traders could receive oil now and return it over a scheduled period of time. It means that the strategic petroleum reserves will be replenished, “said Hochstein.

“Therefore, it’s more flexible so that we can do this again in the future if the need arises. I think we wanted to do something that had the ability and flexibility to influence the market and do it. , When the need for the American economy arises. “

In the first move of this kind, Biden announced on November 23 the coordinated release of oil between the United States, India, China, Japan, South Korea and the United Kingdom.

Under this plan, the United States will release 50 million barrels from its strategic petroleum reserves. Of that total, 32 million barrels will be replaced in the coming months, and 18 million barrels will accelerate previously approved sales.

OPEC and related non-OPEC producers, an influential group known as OPEC and OPEC +, Ignore repeatedly US pressure to increase oil supply to stop soaring fuel prices.

The group, led by OPEC kingpin Saudi Arabia and non-OPEC leader Russia, will meet again on Thursday to discuss the next phase of production policy.

There are few signs that the group is trying to change its tack from its current output plan.

Oil price whip saw

Oil price Rise on monday, Continue Largest one-day pullback since April last year Late last week.

International benchmark Brent Crude oil futures traded at $ 74.60 a barrel on Monday, rising more than 2.5% in the session. US West Texas Intermediate Futures were $ 70.62, about 3.6% higher.

Some countries announced travel restrictions on Friday Newly identified Omicron Covid variant.. Some energy market participants have become afraid of the resurgence of travel bans, which could weaken fuel demand.

Analysts believe it’s not yet clear how demand will be affected, but Monday’s oil price rebound indicates that last week’s slump may have been overkill.

“We have survived a very fragile economic recovery and we had to deal with the underlying factors that could threaten that recovery,” Hochstein said.

“It was seen in the market last Tuesday in the U.S. move, and frankly, we also saw it on Friday, when oil prices fell so sharply because we are in this very vulnerable moment. It was done, “he added.

The World Health Organization has recognized the newly identified Covid strain (originally called strain B.1.1.529) as a variant of concern. WHO on Monday, Omicron “Very expensive“South African doctors explain the symptoms identified so far, but at global risk.”Very calm.. “

The United Nations Health Agency says it will take weeks to understand how mutants affect diagnosis, treatment and vaccines.

— CNBC’s Pippa Stevens contributed to this report.

Biden is ready to release more oil reserves and lower prices: Amos Hochstein

Source link Biden is ready to release more oil reserves and lower prices: Amos Hochstein

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