Exclusive | US asks China to release oil reserves as part of discussions on economic cooperation, source says
- The issue of China joining the United States in releasing crude oil reserves was raised during virtual the meeting between Xi Jinping and Joe Biden
- The Biden administration is under growing domestic pressure to consider releasing strategic oil reserves after a recent surge in US inflation
The United States has asked China to release oil reserves to help stabilise soaring international crude oil prices as part of ongoing discussions on economic cooperation between the two countries.
The issue was also broached during a phone conversation between Chinese foreign minister Wang Yi and US Secretary of State Antony Blinken two days earlier.
“One of the pressing issues for both sides is energy supply,” the person said, who requested anonymity as the information is not public.
“Currently, the energy departments from both sides are negotiating the details,” the person said, adding that China is open to the US request but has not committed to specific measures yet, citing the need to consider its domestic consumption needs.
Currently, the energy departments from both sides are negotiating the details
The US has the world’s largest reported strategic petroleum reserve at 727 million barrels whereas China has about 200 million barrels and is by far the world’s largest importer of crude oil. If the two countries jointly take action, it will have a deep impact on global oil prices.