The announcement of the sale was expected, after the Biden administration announced it as part of a wider 50 million barrel release from the Strategic Petroleum Reserve.
“We are set for a period that could be dangerous. If there isn’t more spending on investments to preserve production capacity and increase it, an energy crisis is coming to the world,” Prince Abdulaziz bin Salman al-Saud said.
The U.S. holds roughly 600 million barrels of crude oil in giant caverns in Texas and Louisiana. Its current inventory is at its lowest since 2003.
“BP strongly believes that the inclusion of WTI Midland, executed correctly, is the best solution for enhancing liquidity, retaining Brent as a well-supplied and trusted light, sweet benchmark,” according to a document seen by Reuters.
“After the extreme weather events of February 2021, the price cap of $9,000 per MWh has proven to be a liability on market participants,” the Public Utility Commission of Texas said in its proposal.
“We appreciate the close coordination over the recent weeks with our partner Saudi Arabia, the UAE and other OPEC+ producers to help address price pressures,” said White House spokesperson Jen Psaki.
The United States has repeatedly pushed OPEC+ to accelerate output hikes as U.S. gasoline prices soared and President Joe Biden’s approval ratings slid.
OPEC+ postponed two committee meetings from that were planned for Nov. 29-30 to later during the week to “buy time to review matters” surrounding the new variant, Prince Abdulaziz said.
The U.S. has made the largest commitment for a reserves release at 50 million barrels of pre-approved sales along with loans to the market, but without China, the action would have less impact.
To ensure fuel supply, JERA plans to keep its LNG inventory level at 1.7 million tonnes during December and February, 0.2 million tonnes higher than usual, Noguchi said.