Remember that big release of 50 million barrels of oil from the Strategic Petroleum Reserve? Let us jog your memory: it was the hallmark solution proposed by the Biden administration to try and address soaring energy costs for Americans.
Well, it turns out that most of that oil is going to wind up in China and India, Fox News reports. Both countries have been “actively purchasing U.S. sour crude oil produced in the Gulf of Mexico”.
Sour crude is appealing to foreign buyers due to its affordable price, which comes from its high sulfur content. This also makes it tougher to refine and process.
18 million barrels of the 50 million released have already been approved for sale. 32 million barrels remain and will be “intended for U.S. consumers to alleviate increased demand,” Fox News reports.
China, India, Japan, South Korea and the United Kingdom are all tapping into their petroleum reserves as well.
The White House commented: “The President has been working with countries across the world to address the lack of supply as the world exits the pandemic.”
The administration continued: “The president stands ready to take additional action, if needed, and is prepared to use his full authorities working in coordination with the rest of the world to maintain adequate supply as we exit the pandemic.”
This article appeared at ZeroHedge.com at: https://www.zerohedge.com/markets/bidens-strategic-oil-reserve-release-will-mostly-go-china-and-india