With natural gas prices hovering near 7-year highs, the United States and other countries will develop strategic oil reserves

Read Time:2 Minute, 4 Second


President Joe Biden said on Tuesday that the government will use strategic oil reserves as part of energy-consuming countries’ global efforts to quell the rapid rise in fuel prices in 2021.

The coordinated release between the United States, India, China, Japan, South Korea and the United Kingdom is the first of its kind.

In total, the United States will release 50 million barrels of oil from the SPR. Of these 32 million barrels, transactions will take place in the next few months, and 18 million barrels will accelerate previously authorized sales.

The White House said in a statement: “The president is ready to take additional actions when needed, and is ready to use all his powers to cooperate with the rest of the world to maintain adequate supplies when we emerge from the pandemic.”

Before the announcement on Tuesday, the government had stated for months that it was studying its disposable tools as West Texas Intermediate crude oil futures soared to a seven-year high of more than $85.

The price of the pump has followed the rise and is currently hovering near the highest level in seven years. According to data from AAA, the national average price of gasoline per gallon on Monday was 3.409 US dollars, higher than 2.11 US dollars a year ago.

“This is a timely move to try to reduce oil prices,” said John Kilduff, a partner at Again Capital. He added: “The increased supply should help make up for the production shortage before winter, especially if we also identify meaningful supplies from several major Asian consumer countries.”

According to data from the Department of Energy, as of November 19, SPR held 604.5 million barrels of oil in four locations. According to DofE, it will take 13 days after the president announces that oil has entered the market.

SPR was established in 1975 after the Arab oil embargo, and can hold a total of 727 million barrels.

According to DofE, SPR can be used in three ways: complete reduction in response to “serious energy interruptions,” limited reductions of up to 30 million barrels, or reductions for exchanges or trial sales.

After the announcement, US oil rebounded from its low point, falling 28 cents to US$76.50 per barrel. The international benchmark Brent crude oil price was US$79.98 per barrel, up 34 cents.


If you want to know more about business please go to https://updatednews24.com/category/business/

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %
We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners. View more
Cookies settings
Accept
Decline
Privacy & Cookie policy
Privacy & Cookies policy
Cookie name Active

Who we are

Suggested text: Our website address is: https://updatednews24.com.

Comments

Suggested text: When visitors leave comments on the site we collect the data shown in the comments form, and also the visitor’s IP address and browser user agent string to help spam detection. An anonymized string created from your email address (also called a hash) may be provided to the Gravatar service to see if you are using it. The Gravatar service privacy policy is available here: https://automattic.com/privacy/. After approval of your comment, your profile picture is visible to the public in the context of your comment.

Media

Suggested text: If you upload images to the website, you should avoid uploading images with embedded location data (EXIF GPS) included. Visitors to the website can download and extract any location data from images on the website.

Cookies

Suggested text: If you leave a comment on our site you may opt-in to saving your name, email address and website in cookies. These are for your convenience so that you do not have to fill in your details again when you leave another comment. These cookies will last for one year. If you visit our login page, we will set a temporary cookie to determine if your browser accepts cookies. This cookie contains no personal data and is discarded when you close your browser. When you log in, we will also set up several cookies to save your login information and your screen display choices. Login cookies last for two days, and screen options cookies last for a year. If you select "Remember Me", your login will persist for two weeks. If you log out of your account, the login cookies will be removed. If you edit or publish an article, an additional cookie will be saved in your browser. This cookie includes no personal data and simply indicates the post ID of the article you just edited. It expires after 1 day.

Embedded content from other websites

Suggested text: Articles on this site may include embedded content (e.g. videos, images, articles, etc.). Embedded content from other websites behaves in the exact same way as if the visitor has visited the other website. These websites may collect data about you, use cookies, embed additional third-party tracking, and monitor your interaction with that embedded content, including tracking your interaction with the embedded content if you have an account and are logged in to that website.

Who we share your data with

Suggested text: If you request a password reset, your IP address will be included in the reset email.

How long we retain your data

Suggested text: If you leave a comment, the comment and its metadata are retained indefinitely. This is so we can recognize and approve any follow-up comments automatically instead of holding them in a moderation queue. For users that register on our website (if any), we also store the personal information they provide in their user profile. All users can see, edit, or delete their personal information at any time (except they cannot change their username). Website administrators can also see and edit that information.

What rights you have over your data

Suggested text: If you have an account on this site, or have left comments, you can request to receive an exported file of the personal data we hold about you, including any data you have provided to us. You can also request that we erase any personal data we hold about you. This does not include any data we are obliged to keep for administrative, legal, or security purposes.

Where we send your data

Suggested text: Visitor comments may be checked through an automated spam detection service.
Save settings
Cookies settings