Home Politics Biden gathers the coalition to lower the oil prices

Biden gathers the coalition to lower the oil prices

Several countries, including the United States, plan to release some of their oil reserves to contain rising oil prices. American president Joe Biden might announce that on Tuesday, the news agency Bloomberg says based on sources close to the file. The oil-producing countries of OPEC+ already indicated that in that case they might adjust their own production.

Biden has long been of the opinion that the price of oil is too high and therefore called on OPEC+ (the oil cartel OPEC, supplemented by countries such as Russia) to produce more. However, the oil-producing countries, which suffered a great deal from the then low oil prices last year, did not feel that this was the case. Biden is therefore trying to forge a coalition of countries that each bring part of their reserves into the oil market. Countries such as India, Japan and South Korea would join the US, and China is also considering using its oil reserves.

OPEC + countries are not happy that strategic oil reserves would be used to contain rising prices. These reserves are intended for emergencies and, according to the countries, they do not exist.

Next week, OPEC+ will meet to talk about production for december. According to current plans, the countries will produce an additional 400 000 barrels per day.

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