China is working with the US to release its national strategic oil reserves when the Lunar New Year holidays begin from February 1. CL1! is up +0.72%
- The move by China, in coordination with the US, aims to tame rising prices that have resulted from tight global supplies.
- The agreement, made in late 2021, will allow China to release higher stock files if oil price is above $85 and lower amounts if it is near the $75 level.
- The US also discussed the possibility of coordinated release of stockpiles with other allies that include Japan, India, and South Korea.
- The latest moves are not new as the US engaged in crude oil stock sales in the past few weeks, with other countries such as South Korea and Japan also following suit.
- China made its first public auction of crude reserves last September, with a release of around 7.4 million barrels, equivalent to half a day of its national usage.
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