US, other countries to release oil from reserves to lower fuel prices

US: US President Joe Biden said Tuesday that the administration will tap the Strategic Petroleum Reserve as part of a global effort by energy-consuming nations to calm 2021′s rapid rise in fuel prices.

The coordinated release between the US, India, China, Japan, Republic of Korea and the United Kingdom is the first such move of its kind.

The US will release 50 million barrels from the SPR. Of that total, 32 million barrels will be an exchange over the next several months, while 18 million barrels will be an acceleration of a previously authorized sale.

US oil dipped 1.9% to a session low of $75.30 per barrel following the announcement, before recovering those losses and moving into positive territory. The contract last traded 2.5% higher at $78.67 per barrel. International benchmark Brent crude stood at $82.31 per barrel, for a gain of 3.2%. Tuesday’s announcement follows the administration saying for months that it was looking into the tools at its disposal as West Texas Intermediate crude futures surged to a seven-year high, above $85.

– FRANCE 24