Sources told Archyde.com that China agreed with the United States at the end of last year to withdraw from its strategic oil reserves near the Lunar New Year holiday, which begins on February 1, as part of a plan launched by Washington to reduce global prices.
Sources familiar with the discussions between the two countries said that China agreed at the end of 2021 to withdraw unspecified quantities of oil according to price levels.
Oil prices fell for the second session in a row, Friday, affected by expectations that Washington may move soon to curb prices that are still above $ 80 a barrel, while restrictions on movement in China to combat the Covid-19 outbreak affected the demand for fuel.
Brent crude futures were down six cents at $84.41 a barrel at 0427 GMT.
US West Texas Intermediate crude contracts also fell 21 cents, or 0.3 percent, to $81.91 a barrel.
China, the world’s second-largest oil consumer, suspended some international flights, and intensified efforts to curb the spread of the virus in Tianjin Province, while the mutated Omicron strain of the Corona virus spread in the northeastern city of Dalian.
Many cities, including Beijing, have also urged residents not to travel during the Lunar New Year holiday, which might reduce fuel demand during the peak travel season.
China reports first annual drop in oil imports in 20 years
In 2021, China also recorded the first annual decline in crude oil imports in 20 years.
And the US Department of Energy said, on Thursday, that it had sold 18 million barrels of oil from the strategic reserve to six companies.
Despite this, the two benchmarks, Brent and West Texas Intermediate, are heading to rise for the fourth consecutive week, supported by concerns regarding supplies and political concerns in Libya and Kazakhstan, and the decline in US crude stocks to the lowest level since 2018.
China imports
Official data showed that China’s imports of crude oil totaled 512.98 million tons in 2021, compared to 542.39 million tons in the previous year, marking the first annual decline since 2001.
According to Chinese customs data, imports in December amounted to 46.14 million tons. (Archyde.com)
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