China Has Released Crude Oil From Its National Reserve
China has released crude oil from its National Reserve. China’s unprecedented decision, crude oil was released for the first time from National Petroleum Reserve, know what is the big reason for this
China has released crude oil for the first time from its Strategic Petroleum Reserve in an unprecedented decision.
Its objective is to bring down the rising inflation in the country and provide a kind of stability to the demand and supply of fuel.
A statement issued by the State Bureau of Grain and Materials Reserves on Thursday said.
“With the approval of the State Council, the State Bureau of Grain and Materials Reserves has, for the first time, decided to release crude oil from the National Reserve in a phased manner on a rotational basis. released.”
This statement said that its main objective is to provide relief to the production companies facing the pressure of an increase in the prices of raw materials.
The statement also said, “The Reserve Market Regulator has an important role to play in releasing crude oil from the National Oil Reserves on a rotational basis.
Open market auction of National Reserve’s crude oil will help in effective implementation of National Energy Security by providing better stability of supply and demand domestically.
Although the Chinese government has not explicitly said how much oil it will sell, but according to a CNN report, the storage of crude oil is very important for China.
After China’s announcement on Thursday, oil prices fell to a two-week low. Experts say that China is heavily dependent on imports of oil from foreign countries to boost its economy.
In such a situation, China has been working for the last several years to fill his emergency oil reserve.
Earlier, China said that it wants to store 85 million tonnes of oil in its emergency reserve by the end of 2020. This is almost equal to the US Strategic Petroleum Reserve.
Crude oil is being released from the strategic reserve at a time when China is battling high inflation. The producer price index in the country rose to a 13-year high last month.
On the other hand, the costs associated with energy are also increasing. At the same time, the demand has increased so much that there is still a shortage of electricity in many provinces.
