China: Working on release of crude oil reserves

China National Food and Strategic Reserves Administration announced on Thursday, it is working on the release of crude oil reserves.

"We are carrying out the work of releasing crude oil reserves. And for any details related to the release, we will put out a statement on our website," a reserve bureau spokeswoman said.

The crude oil reserves release could be to offset a supply shortage and stabilize prices in certain regions.

On October 31, the NFSRA had started its annual state oil product reserves rotation to increase gasoil and gasoline supplies in the domestic market, as part of its role to adjust market fundamentals.

Market reaction

WTI is off the monthly lows but remains vulnerable at around $77 amid the above headlines.

Wednesday’s reports that the US reduced stocks and strategic petroleum reserve (SPR) by 3.2 million barrels knocked down oil prices to multi-week troughs.

Meanwhile, “the Biden administration has asked some of the world's largest oil-consuming nations - including China, India and Japan - to consider releasing crude stockpiles in a coordinated effort to lower global energy prices,” Reuters reported, citing several people familiar with knowledge of the matter.

South Korea has received the US request to release oil reserves in response to rising oil prices, the country’s Industry Ministry said on Thursday.