Washington will release 50 million barrels of oil to reduce energy costs

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The White House announced on Tuesday that US President Joe Biden has ordered the withdrawal of 50 million barrels of crude oil from the Strategic Reserve in order to reduce the cost of energy sold to the domestic consumer.

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The move comes after the “OPEC +” alliance, on more than one occasion, ignored the US calls to pump larger quantities of oil to global markets, to reduce crude prices.

The White House said in a statement that its decision to withdraw quantities from the strategic crude reserves comes in coordination with other countries, including China.

Through its decision, Washington is looking for a reduction in the prices of energy (oil and gas) sold in the local markets after the price of oil reached a 7-year peak.

In addition to the United States, countries such as China (the largest importer of crude), India (the third-largest importer), and South Korea (the fourth largest importer) are preparing.

Contrary to expectations, oil prices turned upwards after the American announcement, as the markets were expecting a withdrawal of reserves in quantities greater than 50 million barrels.

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The US decision would also confuse the global energy market.

After oil prices recorded a decline of 0.70 percent in early trading today, they turned up after the US decision by 0.29 percent to $79.93 per barrel of Brent.