On November 23, 2021, the U.S. government announced that the U.S. Department of Energy would release 50 million barrels of oil from the strategic oil reserve. This release will unite China, India, Japan, South Korea, and the United Kingdom and other major oil consuming countries to act together.
This paper analyzes the release of strategic oil reserves in the history of the United States, and comes to the conclusion that the particularity of this release is that the United States tries to use strategic oil reserves as a weapon to lower oil prices, so as to deal with the high oil product prices in the United States and the high inflation rate brought by the trillions of dollars economic stimulus plan. Then, this paper points out that the joint release does not solve the essential problems faced by the oil market, and the scale is small, which can not reverse the going long trend in the current international market. The performance of the international crude oil market also confirms this. It also makes a comprehensive analysis of the reasons for the current tight market supply. Finally, this paper analyzes the enlightenment of the joint release of oil reserves to China.
