WASHINGTON, USA
US President, Joe Biden authorized the release of 30 million barrels of oil from the US's Strategic Petroleum Reserve on Tuesday in a bid to curb price spikes in the international price caused by Russia's war on Ukraine.
The release is half of the 60
million barrels being freed up in coordinated action between the US and its
international partners, including the International Energy Agency (IEA).
The White House emphasized
that the release is an "initial" tranche intended to mitigate ongoing
price fluctuations.
"IEA Member states also
agreed to continue monitoring markets and consider further releases as
necessary," spokeswoman Jen Psaki said in a statement.
"We are prepared to use
every tool available to us to limit disruption to global energy supply as a
result of President (Vladimir) Putin’s actions. We will also continue our
efforts to accelerate diversification of energy supplies away from Russia and
to secure the world from Moscow’s weaponization of oil and gas," she
added, referring to the Russian president.
The joint announcement of the
release of the oil, or 4% of IEA members' emergency stockpiles of 1.5 billion
barrels, is equivalent to 2 million barrels a day for 30 days.
The coordinated dispersal is
the fourth in the history of the IEA since its formation in 1974. Previous
collective action was taken in 2011, 2005, and 1991.
Russia is the third-largest
oil producer globally and the largest exporter worldwide, making it a pivotal
player in global energy markets.
It exports approximately 5
million barrels of crude oil a day, representing roughly 12% of global trade.
The average of 2.85 million barrels a day of petroleum products it supplies
represents around 15% of the global refined product trade.
Around 60% of Russia's oil
exports go to Europe and another 20% to China.
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