China will release crude oil from its national strategic stockpiles around the Lunar New Year holiday, which starts on Feb. 1, as part of a plan coordinated by the US with other major consumers to reduce global prices, sources told reporters.
The sources, who have knowledge of talks between the world’s top two crude consumers, said China agreed late last year to release an unspecified amount of oil depending on price levels.
“China agreed to release a relatively bigger amount if oil is above [US]$85 a barrel, and a smaller volume if oil stays near the [US]$75 level,” said one source, without elaborating.
Photo: Reuters
The release of crude stocks by China will occur around the Lunar New Year, the sources said.
China will be closed for the biggest annual holiday from Jan. 31 to Feb. 6.
The Chinese National Food and Strategic Reserves Administration did not immediately respond to a request for comment.
The agreed release of reserves by China is the result of a series of discussions reported in November that the administration of US President Joe Biden held with other major oil consumers after tight supplies drove global oil prices to multiyear highs.
Biden and top aides discussed the possibility of a coordinated release of crude stocks with close allies including Japan, South Korea and India, as well as with China.
The US has conducted crude swaps and sales from its reserves over the past few weeks, while Japan and South Korea have also announced plans for crude sales.
China in September conducted its first-ever public crude reserves auction of about 7.4 million barrels, about half a day’s consumption in the country.
In November, the food and reserves agency said that it was “working on” a release of crude reserves, but declined to comment on the US request for the coordinated release among buyers.
Oil prices rebounded above US$80 a barrel this week, buoyed by supply disruptions in Libya and Kazakhstan, a fall in US crude inventories to their lowest since 2018 and an improvement in the outlook for fuel demand in Europe as governments there ease COVID-19 restrictions.
Benchmark Brent crude futures was at US$84.79 a barrel and US West Texas Intermediate crude at US$82.23 a barrel at 7:30am GMT.
European Central Bank (ECB) President Christine Lagarde is expected to step down from her role before her eight-year term ends in October next year, the Financial Times reported. Lagarde wants to leave before the French presidential election in April next year, which would allow French President Emmanuel Macron and German Chancellor Friedrich Merz to find her replacement together, the report said, citing an unidentified person familiar with her thoughts on the matter. It is not clear yet when she might exit, the report said. “President Lagarde is totally focused on her mission and has not taken any decision regarding the end of
French President Emmanuel Macron told a global artificial intelligence (AI) summit in India yesterday he was determined to ensure safe oversight of the fast-evolving technology. The EU has led the way for global regulation with its Artificial Intelligence Act, which was adopted in 2024 and is coming into force in phases. “We are determined to continue to shape the rules of the game... with our allies such as India,” Macron said in New Delhi. “Europe is not blindly focused on regulation — Europe is a space for innovation and investment, but it is a safe space.” The AI Impact Summit is the fourth
CONFUSION: Taiwan, Japan and other big exporters are cautiously monitoring the situation, while analysts said more Trump responses ate likely after his loss in court US trading partners in Asia started weighing fresh uncertainties yesterday after President Donald Trump vowed to impose a new tariff on imports, hours after the Supreme Court struck down many of the sweeping levies he used to launch a global trade war. The court’s ruling invalidated a number of tariffs that the Trump administration had imposed on Asian export powerhouses from China and South Korea to Japan and Taiwan, the world’s largest chip maker and a key player in tech supply chains. Within hours, Trump said he would impose a new 10 percent duty on US imports from all countries starting on
STRATEGIC ALLIANCE: The initiative is aimed at protecting semiconductor supply chain resilience to reduce dependence on China-dominated manufacturing hubs India yesterday joined a US-led initiative to strengthen technology cooperation among strategic allies in a move that underscores the nations’ warming ties after a brief strain over New Delhi’s unabated purchase of discounted Russian oil. The decision aligns India closely with Washington’s efforts to build secure supply chains for semiconductors, advanced manufacturing and critical technologies at a time when geopolitical competition with China is intensifying. It also signals a reset in relations following friction over energy trade and tariffs. Nations that have joined the Pax Silica framework include Japan, South Korea, the UK and Israel. “Pax Silica will be a group of nations
RSS