Japanese Prime Minister Fumio Kishida said Wednesday the government would release some of its oil reserves in an agreement with the United States in a way that respects Japanese law.
Industry Minister Koichi Hagiuda will announce details such as the amount of reserves released and the schedule, Kishida told reporters, adding that Japan will continue to lobby oil-producing countries to counter the drastic price movements.
US President Joe Biden announced on Tuesday that he would release 50 million barrels of crude oil from the strategic reserve to lower gas prices. This is the result of an agreement with a number of other countries, including China and India, to do the same.
“US consumers are feeling the impact of higher fuel prices at gas stations and their heating bills, as are US companies, as oil supply is lagging behind demand as the global economy recovers from the pandemic,” the White House said.
The White House stressed that the decision to release 50 million of the 600 million barrels of oil from the strategic reserve was the result of “weeks of consultations” with countries around the world and was made in parallel with the provision of reserves by other major energy consumers, including China, Japan and India, South Korea and Great Britain.
The White House noted that the news of these talks alone contributed to a 10 percent reduction in the price of gas in recent times.
As reported by Fortune, the movement of the US and other countries may meet with the reaction of OPEC + countries, the largest oil producers, who may revise their plans to increase oil production next year. Despite pressure from Washington and other countries, OPEC + has not yet increased its oil supply.
High energy prices are one of the biggest sources of increased inflation in the US and – as polls show – also contributing to the weakening of President Biden’s ratings. The average price of a gallon of gasoline in the US is now $ 3.40 and while it has started to decline, it is over 50%. higher than in spring 2020 (PAP)
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