China is joining a global move to lower oil prices. The move comes a week after the issue was raised at a China – United States leaders’ summit.
The Spokesman for Chinese Ministry of Foreign Affairs, Zhao Lijian said on Wednesday (Nov 24), “China will arrange the release of national crude reserve based on its own needs and take other necessary measures to stabilize the market, and will release the information in a timely manner.”
China will join the United States, Britain, Japan, South Korea, and India in releasing state reserves.
Mr. Zhao added, “China has noticed that major oil-consuming countries have moved to release crude reserves to counter market turbulence and changes. China is in close communication with related sides, including crude consuming and producing countries, and hopes to ensure long-term stable performance of the crude market over the long term via communication and coordination.”
The United States says it will release 50 million barrels of oil from its Strategic Petroleum Reserve. Analysts say China’s second release in 2 months could amount to 7.38 million barrels.
India has offered 5 million barrels and Britain will release 1.5 million from private reserves. OPEC+ is set to meet next week to discuss plans for January production. The oil-producers’ cartel has said previously it will add 400,000 more barrels to daily output each month.
The actual impact of these moves remains to be seen. There have been concerns voiced out by oil producers that ramping up oil supplies could lead to a crash in the near future.