Deputy Director General of the National Energy Institute, Alexander Frolov, wrote in “Izvestia” about the reason why Washington pumps oil from its strategic reserves and incites its partners to do so.
The article stated: Joe Biden announced that the United States will release some of its strategic petroleum reserves in order to intervene in the market and lower prices within a few months. The market froze for a second in anticipation of something terrible, and then the volume of interventions became known – 50 million barrels. The players breathed a sigh of relief, after the loud statement of the US President, the black gold prices rebounded.
The United States, represented by its President, said that it does not act independently, but is supported by other oil consumers: China, India, Japan, South Korea and the United Kingdom.
Even the most optimistic estimates, which indicate that the words of the US President about a large number of “interfering” are not a hoax, but rather talk about the rather modest possibilities of the intervention of other consuming countries (about 20-25 million barrels). But how big are these sizes?
According to current estimates, global oil consumption is close to pre-crisis levels – about 100 million barrels per day. The United States supplies about 20% of world consumption.. China ranks second in terms of oil demand – about 14 million barrels per day.
It is noteworthy that the “OPEC +” union (primarily Russia and Saudi Arabia) is a guarantee of stability and predictability in the oil market. It is precisely stability and predictability that the market has been lacking since 2014. Today, the United States, in trying to orchestrate the right cartel plot, is once again acting as a bully who does not like stability and predictability.
The article expresses only the opinion of the newspaper or the writer