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An OPEC+ Counterpunch to Oil Reserve Releases Would Come at a Cost

  • Producers warned that they would respond to a stocks release
  • Group would need to give up two months of output increases
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Biden Taps U.S. Oil Reserves in Coordinated Multi-Nation Release

The OPEC+ group of oil producers would have to defer at least two months’ worth of planned output increases to offset strategic stockpile releases led by the U.S. That won’t be a comfortable option for the countries involved, which have been steadily raising output targets since May, writes Bloomberg oil strategist Julian Lee.

The U.S. will release 50 million barrels of crude from the Strategic Petroleum Reserve, with India adding another 5 million barrels from its emergency stockpiles and the U.K. contributing 1.5 million barrels. Announcements are also expected from China, Japan and South Korea, which together could add anywhere between 10 million and 20 million barrels.