US asks Asia’s largest economies to consider releasing oil reserves: report

The U.S. has asked Asia’s largest economies to consider releasing oil reserves to combat rising energy prices, Reuters reported, citing unidentified sources.

The sources told Reuters that talks are happening specifically with China, India, Japan and South Korea.

One source reportedly said that 20 million to 30 million barrels of the oil held in reserves would need to be released in order to have an impact on the U.S. market.

The U.S. and other countries have not struck a deal or finalized any details of how a coordinated release would work, several sources told the news service. 

President Biden has discussed a coordinated effort to release crude stockpiles with aides in recent weeks in an effort to lower energy prices, Reuters noted. 

Japan and South Korea both reportedly confirmed the U.S. has requested that the countries work together to deal with rising oil prices.

However, a Japanese industry ministry official would not confirm the request for a coordinated release of oil reserves. Under Japanese law, the government can’t use reserves to try to lower prices, according to Reuters. 

South Korea did confirm the request to coordinate a release to lower prices, but an official said that Seoul cannot release oil reserves due to prices.

“We are thoroughly reviewing the U.S. request, however, we do not release oil reserve because of rising oil prices. We could release oil reserve in case of supply imbalance, but not to respond to rising oil prices,” the official told Reuters.

China’s state reserve bureau would not give a comment but said it is working to release crude oil reserves. 

The move sends a message to OPEC, according to Reuters, which has repeatedly ignored U.S. requests to increase production.

“We’re talking about the symbolism of the largest consumers of the world sending a message to OPEC that ‘you’ve got to change your behavior,'” one of the sources told the news service.

The Hill has reached out to the White House for comment.