The governments of some of the world’s largest economies said on Thursday they were seeking to free oil from their strategic reserves, following a rare U.S. call for coordinated action to cool global energy prices and before a meeting of the main oil-producing countries.
The Biden administration has called on a wide range of countries, including first-time China, to consider releasing stocks of crude oil, the White House said Thursday.
Other major consumers such as India, Japan and South Korea were also involved in the talks, several people familiar with the surveys told Reporters on Wednesday.
As the global economy recovers from the pandemic, Washington is frustrated that producers of OPEC, the Organization of the Petroleum Exporting Countries and allies such as Russia, have rejected U.S. demands to speed up the process.
Joe Biden faces political pressure ahead of next year’s midterm legislative elections. An October Reuters poll showed that 67% of American adults agreed that inflation is a major concern.
Members of Biden’s national security team discussed the need to meet the demand for fuel, White House spokesman Jen Psaki said Thursday.
OPEC plans to meet in December.
The group has taken a slower approach to increasing production, seeing the economic recovery as too fragile to justify higher supply.
Oil prices fell about 4% to a six-week low after Reuters announced demand from the United States and China to decide to release crude oil, before gaining ground on Thursday.
Oil prices have retreated from it recent highs in anticipation of an increase in global supply.