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Exclusive: China reserve bureau working on crude oil release

Published 11/17/2021, 09:24 PM
Updated 11/18/2021, 01:27 PM
© Reuters. FILE PHOTO: A crude oil tanker is seen at Qingdao Port, Shandong province, China, April 21, 2019. REUTERS/Jason Lee/File Photo
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BEIJING (Reuters) - China's state reserve bureau said on Thursday it is working on a release of crude oil reserves although it declined to comment on a U.S. request to the world's top consuming nations to tap stockpiles to ease global energy prices.

The National Food and Strategic Reserves Administration told Reuters when asked to comment on the U.S. request that it would disclose the details of the move on its website.

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

China, the world's biggest oil importer, rolled out its first public auction of state crude oil reserves to a select group of domestic refiners in September, aiming to stabilise energy prices.

Beijing also said earlier this month it would tap its state fuel reserves to tame the soaring diesel and gasoline prices.

Benchmark Brent oil prices have gained as much as 69% this year. It retreated 0.4% to $79.97 per barrel on Thursday.

U.S. light sweet crude oil prices dropped 0.8% and touched its lowest level in a month.

China keeps its strategic reserve level a secret. The last public update was in 2019 when the National Energy Administration disclosed the country had oil inventories, including state reserves and stocks at oil firms and commercial tanks, to last 80 days.

© Reuters. FILE PHOTO: A Chinese flag flutters at the Tiananmen Square in Beijing, China October 25, 2019.  REUTERS/Florence Lo

Consultancy Energy Aspects earlier this year estimated that China's state oil reserves hold about 220 million barrels of crude oil, equivalent to 15 days of demand.

"Physical oil markets in Asia remain tight ... A coordinated SPR release could have a larger impact, even if also temporary," said analysts from Citi in a note on Thursday.

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