It was reported that major oil producers, Russia and Saudi Arabia, are considering a move towards stopping planned increases in oil production, after Washington announced the release of quantities of strategic oil reserves.
The Wall Street Journal, citing sources familiar with the talks, reported that other members of the “OPEC +” alliance, including the UAE and Kuwait, are not convinced that production increases are necessary.
And the administration of US President Joe Biden announced last Tuesday that it will withdraw quantities of oil from the strategic reserve, in coordination with China, India, South Korea, Japan and Britain, in an attempt to calm prices, that is, reduce crude prices.
The United States said it would release 50 million barrels of oil from its strategic reserves to curb the rise in gasoline prices, with other consumers such as Japan, the United Kingdom, India, China and South Korea releasing their reserves as well.
Experts believe that the US step is worthless, as the quantities that will be offered are approximately equivalent to global oil consumption for one day only.
Washington’s move came after repeated attempts to pressure “OPEC” and its allies, what is known as the “OPEC +” group, to increase production above the agreed level, but the group rejected the American request and stuck to its plan, saying that this request would lead to an increase in supply.
The American step has not yielded results so far, as black gold prices rose following the news of the release of reserves.
Source: “The Wall Street Journal”