How rising oil prices could open rare window of cooperation between the US and China

Washington is planning to release oil from its strategic reserve in coordination with other nations to keep down prices – a plan that could involve Beijing

The impact of soaring energy costs could spur the world’s two biggest economies to make common cause in an effort to force OPEC+ to boost supplies

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The US is planning to release 50 million barrels of oil from its strategic reserve, with other nations following suit. Photo: AFP

Published: 10:00pm, 4 Dec 2021

China is expected to join a US-led tug of war with oil producers in a rare example of cooperation between the two countries.

The political impact of rising energy costs and inflation has prompted US President Joe Biden to reach out to other countries to coordinate a release of strategic reserves.

Biden announced last month that the US would start releasing 50 million barrels from its Strategic Petroleum Reserve next month, with Britain, India, Japan and South Korea expected to make smaller releases.

He discussed the plan with his Chinese counterpart Xi Jinping at their virtual summit a week before the announcement, and an initial agreement was reached for China to look into the possibility.

Beijing has yet to publicly confirm its intentions, but it has been discussing plans for the US energy secretary to meet China’s National Energy Administration to discuss the release, according to a person familiar with the arrangement.

China has also been grappling with rising energy prices that have led to power rationing, hitting factories, businesses and household heating supplies.