OPEC+ Might Respond to Reserve Release of Crude Oil by Increasing Production
President Biden is reportedly to announce details of reserve release on Tuesday and OPEC+ might respond by increasing production
President Joe Biden is expected to announce a plan to release reserve from strategic petroleum reserve on Tuesday, according to a Bloomberg report. However, the announcement day is not official yet. Earlier Biden coordinated with world’s biggest buyers of crude oil including China, Indian, Japan and Koreas to release strategic oil reserves in a repose to soaring crude oil prices.
According to Bloomberg, the U.S. is considering to release more than 35 million barrels of crudes over time.
Bloomberg earlier reported, delegates of OPEC+ said given the current market condition the release of oil reserve is unjustified and the group may reconsider plans to add more to production when they meet next week.
Following the Bloomberg news, oil prices took an upturn.
The geopolitical division between U.S. and OPEC+ countries on crude oil is the latest since the price war between Saudi Arabia and Russia in early 2020.
