· Oil prices slide as China readies release of crude from strategic reserves
Oil prices fell on Thursday, adding to an overnight plunge as China said it was moving to release reserves following a Reuters report that the United States was asking big crude consumers to consider a coordinated release of stocks to lower prices.
The bid by the U.S. administration to shock markets comes as inflationary pressures, partly driven by surging energy prices, starts to produce political backlash, as the world fitfully recovers from the worst health crisis in a century.
U.S. crude was down 84 cents, or 1.1%, at $77.52 a barrel by 0348 GMT, having fallen 3% overnight. Brent crude fell 44 cents, or 0.6%, to $79.84 a barrel after falling 2.6% to the lowest close since early October on Wednesday.
Prices hit seven-year highs last month as the market focused on the swift rise in demand that has come with lockdowns being lifted and economies recovering against a slow increase in supply from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, called OPEC+.
China's state reserve bureau said it was working on a release of crude oil reserves although it declined to comment on the U.S. request.
A Japanese industry ministry official said the United States has requested Tokyo's cooperation in dealing with higher oil prices, but he could not confirm whether the request included coordinated releases of stockpiles. By law, Japan cannot use reserve releases to lower prices, the official said.
A South Korean official confirmed the United States had asked Seoul to release some oil reserves.
Reference: Reuters
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