China will release oil from its strategic national stockpiles around the Lunar New Year holiday, which begins on February 1, as part of a plan coordinated by the United States with other major consumers to lower global prices, sources told Reuters.
The sources, who are aware of negotiations between the world’s two biggest oil consumers, said China had agreed in late 2021 to release an unspecified amount of oil depending on price levels.
According to one source, China has agreed to release a relatively larger amount if oil is above $85 USD, and a smaller amount if oil is close to the $75 level.
Brent oil prices operated above US$ 85 a barrel this Friday (14).
China’s release of oil stockpiles will take place around Lunar New Year, the sources said. China will be closed for the biggest annual holiday from January 31 to February 6.
China’s National Administration of Food and Strategic Reserves did not immediately respond to a request for comment.
China’s agreed release of reserves is the result of a series of discussions, reported by Reuters in November, that the Biden administration held with other big oil consumers after tight supplies sent global oil prices to multi-year highs.
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