US asks big countries to coordinate releases from oil reserves, makes no decision on SPR

“The Biden administration has asked some of the world's largest oil-consuming nations to consider releasing some of their crude reserves in a coordinated effort to lower prices and stimulate the economic recovery,” Reuters quotes anonymous sources to convey the news on late Wednesday night.

Key quotes

The Organization of the Petroleum Exporting Countries and allied producers including Russia have resisted calls from President Joe Biden to speed up the rate of their supply increases.

In recent weeks, Biden and top aides have raised the issue with close allies including Japan, as well as with China, the sources said.

White House spokesperson says no decision made on oil reserve release.

US tap of SPR (Strategic Petroleum Reserve) could either be in form of sale and/or loan from the reserve.

US release of oil from reserve needs to be more than 20 mln-30 mln barrels to get message to OPEC.

US asked India, South Korea to consider oil reserve release.

US did not ask European countries to release oil from reserves.

US officials asked large oil-consuming countries to release oil after pleas to OPEC to supply more failed.

FX implications

WTI crude oil prices take offers to refresh the lowest levels in seven weeks, around $77.85 at the latest, following the news.

Read: WTI drops to fresh daily lows under $79.50 despite bullish inventory report