The move aims to curb rising energy prices after the OPEC producer group and its allies rejected repeated requests from Washington and other consuming countries to increase production more quickly to meet growing demand.
Brent crude fell 0.7% to $ 79.10 a barrel by 10:30 am Kiev time. WTI crude oil fell 1.1% to $ 75.90 a barrel.
US President Joe Biden is facing low approval ratings due to high prices for gasoline and other consumer goods during the recovery from the coronavirus pandemic, posing a threat to him and his Democratic Party ahead of next year’s congressional elections.
A so-called “swap” from the US Strategic Oil Reserve (SPR) will be announced on Tuesday, according to a Reuters source, and the move will be coordinated with several countries. The source did not specify how much oil will be released from the reserves.
Biden has already asked China, India, South Korea and Japan to jointly open up strategic oil reserves with the United States. Officials in Japan and India are working on how to do this.
Washington’s unprecedented efforts to align with major Asian countries to lower energy prices are intended to alert major producers to extract more oil to allay fears of high fuel prices in powerful economies.
The OPEC + group, which brings together the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, is scheduled to meet on December 2 to discuss production policies.
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