It will be an unprecedented operation. Never 6 countries have simultaneously released part of their strategic oil reserves. US administration sources say that just the news that Joe Biden is talking to other states has caused the price of oil to drop by about 10%.
For now, only the Americans have officially confirmed the number of barrels they are going to put on the market. The energy department has orders to release 50 million barrels. The other states are still studying when they can release the fuel and how much they have available.
Japan has already said it can move forward as quickly as possible, but it has a legal limitation. The strategic reserve is in the hands of the state, but also private and can only be used in case of lack of fuel.
In India, a source familiar with this process revealed to Bloomberg agency that the country would be ready to release 5 million barrels as early as next week. The United Kingdom will have made available 1.5 million barrels.
Joe Biden has been urging OPEC to increase production so that prices can come down, but oil-producing countries have only committed to a gradual increase. The US president therefore advanced to this operation with other states.
Although the barrels may be available in the coming weeks, the results should only be felt at the end of December, with the reduction of prices in international markets.
This operation led by Biden could cause a movement in the opposite direction on the part of the Gulf countries and Russia, which have already made it clear that they want to control supply to keep prices high. OPEC may even go back on its promise to increase supply over the next few months