The Biden administration has asked China, India, Japan, and South Korea to consider releasing crude oil from their reserves in a coordinated effort to lower prices, Reuters reported, citing people familiar with the matter. According to the sources, Tokyo welcomed the request, but it remained unclear how others had responded to the outreach. They also noted that the discussions over a coordinated supply release had not resulted in any final decision.
The move comes amid growing political pressure on President Joe Biden over rising fuel prices and other consumer costs. US gasoline prices averaged $3.41 per gallon recently, climbing over 60% from a year ago as the US economy recovered from the COVID-19 pandemic. Biden’s public approval ratings have also fallen in recent months as energy and food prices rose. The US consumer price index increased 6.2% year-on-year in October, with its energy components jumping 30%.
Previously, the US, Japan, and India also urged OPEC+ to boost supply faster. However, the group has been resisting the call and instead sticking to its plan to gradually raise production by 400,000 bpd each month. OPEC Secretary-General Mohammad Barkindo expects the global oil market to swing to a surplus as soon as December, signalling that the group will keep its cautious production policy in place.
