Biden says US will release 30 million oil barrels from strategic reserve
[WASHINGTON] The United States will contribute half of the 60 million barrels of oil International Energy Agency (IEA) countries agreed to release on Tuesday to stabilise global markets after Russia's invasion of Ukraine, President Joe Biden said.
"I can announce the United States has worked with 30 other countries to release 60 million barrels of oil from reserves around the world. America will lead that effort, releasing 30 million barrels of oil," Biden told members of Congress in his first State of the Union address. He added that Washington stands "ready to do more, if necessary."
The decision earlier in the day by 31 member countries of the IEA's governing board aims to "send a unified and strong message to global oil markets that there will be no shortfall in supplies" as a result of the Ukraine conflict, it said in a statement.
Ministers "expressed solidarity with the people of Ukraine and their democratically elected government in the face of Russia's appalling and unprovoked violation of Ukraine's sovereignty and territorial integrity," it added.
The invasion came "against a backdrop of already tight global oil markets, heightened price volatility, commercial inventories that are at their lowest level since 2014," the statement noted.
Producers had a limited ability to provide more supply in the short term, it added.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Oil prices surged throughout the day, with Brent crude breaking above US$110 a barrel as trading opened in Asia. Brent climbed 4.88 per cent to US$110.09, while WTI was up 5.06 per cent at 108.64. Both are at more than seven-year highs. AFP
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Oil up after US economic data strengthens rate cut expectations
Chevron prepares for North Sea exit after more than 55 years
Red Sea disruptions are splitting global LNG trade into regions
Gold prices edge higher as US dollar, yields soften
Commodities hit highest in a year, posing new inflation threat
Oil rebounds, gains 1% after US crude draw, lukewarm inflation data