Half of the total – 30 million barrels – comes from US strategic petroleum reserves and the other half from allies in Europe and Asia. These other allies are Germany, the United Kingdom, Italy, the Netherlands and other major European countries, as well as Japan and South Korea.
The International Energy Agency said on Tuesday that member states had agreed to issue emergency reserves to send a “strong signal to global oil markets that there will be no shortage” in the wake of Russia’s invasion of Ukraine.
In its own statement, the White House said that “partners around the world condemn Russia’s unprovoked and unprovoked occupation of Ukraine and condemn President Putin’s concerted efforts to counter the impact of his chosen war.”
“President Biden made it clear from the outset that all tools to protect American businesses and consumers are on the table, including the rise in pump prices,” the White House said in a statement.
The oil market was not directly affected. US crude was up about 10% at $ 105.14 a barrel on Tuesday morning. This is the highest level since 2014. Worldwide Brent oil rose about 8% to $ 105.40 a barrel.
“The key point is that this is not enough to calm the market. It helps,” said Michael Tran, general manager of global energy strategy at RBC Capital Markets.
Robert Yower, future vice president of energy for Mizuho Securities, said, “You need to get the numbers.
The invasion of Ukraine has raised concerns about supply restrictions to Russia, the world’s second-largest oil producer. For the first time since 2014, the price of Brent oil ended above $ 100 a barrel on Monday.
High oil prices have pushed gas pump prices to a seven-year high. According to the AAA, the national average for regular petrol rose to $ 3.62 on Tuesday, 9 cents a week and 24 cents a month. At some point, energy prices will become so high that they will erode consumer demand and generally slow the economy.
“We are actively working with countries around the world to estimate the joint output of strategic petroleum reserves for the major energy consuming countries. The United States will release additional barrels of oil if circumstances require,” he said.
Chevron CEO Mike Wirth on Tuesday expressed support for governments releasing emergency oil supplies to address supply concerns over Russia’s occupation of Ukraine.
“I think the combined response of many countries will help in the short term,” Wirth told CNN at a news conference. “Of course, we are looking at markets with concerns about delivery and delivery reliability.”
There was confidence in the wire that there would be no major supply disruption.
“I do not see anything to indicate that Russia’s intentions or the intentions of governments involved in sanctions are to restrict oil supplies,” Wirth said. “Actually, quite the opposite. It seems to me that people are very happy to point out that their purpose is to try to secure the supply of energy for a world in need.
But that is not a long-term solution. Emergency reserves are low in oil. In fact, according to government figures, strategic petroleum reserves have been low since September 2002.
Matt Smith, chief U.S. oil analyst at Kpler, said optimism was optimistic from a market sentiment standpoint.
“Every time the United States announces a release from a strategic petroleum reserve, there will be less bullets they can use later,” Smith said.
This story has been updated with additional reports.
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