Beautiful Virgin Islands

Tuesday, Jun 03, 2025

US Crude Released by Biden From Reserves Will Likely Be Snapped Up By China, India, Claim Traders

US Crude Released by Biden From Reserves Will Likely Be Snapped Up By China, India, Claim Traders

US President Joe Biden has announced the release of 50 million barrels of oil from the Strategic Petroleum Reserve (SPR) on 23 November in a concerted effort with other major energy-consuming nations, including China, India, Japan, South Korea and the UK to reign in surging prices.

A large portion of the oil released from the US Strategic Petroleum Reserve (SPR) in line with an announcement made by President Joe Biden on 23 November will likely end up being exported to China and India, claim traders cited by Bloomberg.

Biden had made the decision to tap 50 million barrels of oil held in US reserves in an “effort to lower prices and address lack of supply around the world,” with 18 million of these already congressionally approved for sale after 17 December.

The announced move is part of a coordinated effort with other leading energy-consuming nations, such as China, India, Japan, South Korea and the United Kingdom. These supplies will consist of sour crude - a type of oil containing a high amount of the impurity sulphur.

Crude oil is defined as "sour" if its sulphur content exceeds 0.5%, while “sweet” crude is defined by the New York Mercantile Exchange (NYMEX) as petroleum with sulphur levels below 0.42%. The high sulphur content makes this oil more expensive to process, requiring additional refining that needs natural gas, which has doubled in price this year.

Accordingly, US refiners are said to typically steer clear of it. Yet some foreign buyers find sour crude attractive due to the lower price as compared to the global Brent benchmark - the crude oil that serves as a reference price for buyers and sellers. US sour crude is currently trading at about $75 a barrel, while Brent costs about $82.

The US sold oil from the SPR throughout the current year, with a record volume exported in October, says the outlet, adding that China and India have been purchasing sour crude produced in the Gulf of Mexico. According to the report, this explains why these two countries agreed to partake in the reserves release spearheaded by Washington.

As it was announced that the US Department of Energy will release 50 million barrels of oil from the SPR, Biden emphasised the move would help tackle “lack of supply, which in turn helps ease prices." The oil market has been heavily impacted by the COVID-19 pandemic, with producers forced to cut oil production due to lack of demand.

In this Friday, May 20, 2021, photo, a fuel truck driver checks the gasoline tank level at a United Oil gas station in Sunset Blvd., in Los Angeles.


Gasoline prices in the US have spiked over the past year, averaging about $3.40 a gallon, more than double what it was a year ago, according to the American Automobile Association.

This comes as the Biden administration’s policy to move away from fossil fuels and seek alternative sources of energy.

"The bottom line: today we're launching a major effort to moderate the price of oil, an effort that will span the globe in its reach and ultimately reach your corner gas station," said Biden on Tuesday.

The president acknowledged that the measures would not alter prices overnight, but "it will make a difference." Earlier this month, OPEC+ agreed to adhere to plans to raise oil output by 400,000 barrels per day from December, defying Biden's calls to significantly boost production.

After Tuesday's announcement, oil prices surged. West Texas Intermediate crude climbed as much as 2.6% to $78.75 per barrel. Global benchmark Brent crude picked up 2.8% to $81.94. Some market analysts suggested it was an indication that the move announced by Biden wasn't the "game-changer"it could have been.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×