US President Joe Biden suggested the Chinese leader Xi Jinspin a joint action plan to reduce oil prices, reports the Edition of South China Morning Post.
It is noted that the proposal was put forward during the days of the US President’s negotiations with the Chinese leader in the video conferencing format.
It is assumed that based on the supply of the United States and China can drastically reduce the price of its strategic oil reserves. This proposal appeared after Russia and Saudi Arabia rejected appeals to increase production volumes, which are provided for by the OPEC agreement +.
It is reported that both China and the United States suffer from high energy prices. Currently, the Ministry of Energy of both countries discuss the details of the proposals. The Chinese side has not yet taken any specific obligations and declares that it will act with its own domestic demand.
The volume of US oil reserves currently is 727 million barrels, while China has about 200 million black gold barrels. Conclusion to the market parts of these reserves can seriously affect prices.
According to the publication, in the coming days, the United States intends to declare the sale of part of its strategic oil reserves, even if Beijing does not support this initiative.
It is noted that the current level of oil prices is not satisfied with China or the United States. The Chinese economy suffers from the rise in price of energy carriers, as the cost of goods produced in this country and exported from around the world is growing. As a result, the demand for Chinese goods falls. And in the US, the area of oil prices led to the highest inflation in the last 30 years, 6.2%.
Experts believe that the pressure on OPEC countries + in order to increase production did not give results, and therefore proposals are heard in the United States to bring strategic reserves from under control. However, according to analysts, even if we bring part of the strategic reserves of US oil reserves, keep low prices for a long time.