US asks Japan, China, others to consider tapping oil reserves: Sources

US asks Japan, China, others to consider tapping oil reserves: Sources

Representative image | Source: Reuters



The Biden administration has asked some of the world’s largest oil consuming nations – including China, India and Japan – to consider releasing crude stockpiles in a coordinated effort to lower global energy prices, according to several people familiar with the matter.

The unusual request comes as U.S. President Joe Biden fends off political pressure over rising pump prices and other consumer costs driven by a rebound in economic activity from lows plumbed early in the coronavirus pandemic.

It also reflects U.S. frustration with members of the Organization of the Petroleum Exporting Countries and its allies who have rebuffed repeated requests from Washington to speed up their production increases.

"We’re talking about the symbolism of the largest consumers of the world sending a message to OPEC that ’you’ve got to change your behavior," one of the sources said.

In Asia, where China said it is working on a crude release, oil prices extended declines prompted by the U.S. request, after settling on Wednesday further below seven-year highs struck in early October.

Biden and top aides have discussed the possibility of a coordinated release of stockpiled oil with close allies including Japan, South Korea and India, as well as