This operation is done in consultation with other states wholesale black gold consumers, especially China, India, Japan, South Korea or the United Kingdom.
It’s a rare decision. The United States will use 50 million barrels of oil levied on their strategic reserves to try to lower gas prices, up sharply, announced the White House, Tuesday, November 23
This operation is done in consultation with other states wholesale black gold consumers, especially China, India, Japan, South Korea or the United Kingdom, according to a statement. By increasing supply, the United States and other states hope to make mechanically lower classes. In the wake of these ads, the Brent yielded 1.3% while the WTI abandoned 1.8%.
In the past, Washington has allowed three times to emergency on the oil market from the strategic reserve – the last one dates back to 2011, when the “Arab Spring” in Libya, a member of the country. The Organization of Open Exporting Countries (OPEC).
Urge OPEC to increase production
The White House has repeatedly urged OPEC to accelerate the rise in its production. The cartel, combined with Russia and nine other producing countries as part of a voluntary limitation agreement for its black gold production, still underground more than 4 million barrels every day.
However, while an OPEC meeting is scheduled for December 2, the United States failed to convince the organization and its allies. The latter highlight the lack of oil shortage and confirmed that they would raise their production of 400,000 barrels a day, no more.
The use of strategic reserves could, however, cause a reaction from OPEC + members, which could therefore slow down the gradual increase in their production, according to some analysts.