China has agreed to unload a portion of its oil reserves as part of a US-led plan to cut down global prices.
Sources close to the matter said China agreed to release an unspecific amount in late 2021, but this would depend on the price levels. One said the country agreed to release a bigger share if prices are above $85 a barrel and a smaller share if prices remain near the $75 level.
A source said the release is likely to be around the Lunar New Year celebration, as China — one of the biggest crude consumers — will be closed for its annual holiday from January 31 to February 6.
The release of reserves comes after talks with the administration of US President Joe Biden, as global prices have hit historic highs due to the top supplies. The discussions also involved the possible coordinated release of oil reserves.
The National Food and Strategic Reserves Administration has yet to comment on the matter.