Many countries release crude oil reserves, what is the trend of the international oil price market after that?

The U.
S.
government announced on November 23 that it would join forces with a number of major oil consumers to release crude oil reserves to cool
oil prices.
The U.
S
.
Department of Energy will release 50 million barrels of crude from the Strategic Petroleum Reserve and sell it to the market as early as mid-to-late December.
According to Xinhua News Agency, Helima Croft, head of global commodity strategy at RBC Capital Markets, expects that given that India has announced plans to release 5 million barrels of crude oil reserves, plus the release of Japan, South Korea, the United Kingdom and other countries, the scale of crude oil reserves released by multiple countries is expected to be 65 million barrels to 70 million barrels
.

Guo Yi, a professor at the School of International Economics and Management of Beijing Technology and Business University, said that the deep-seated reason for the rise in international oil prices is that the United States has long overissued the dollar currency, resulting in the rise in the price of oil denominated in
US dollars.
In addition, since the epidemic, the uncertainty expectations of the world's major oil-producing countries on the prospects of international economic development have increased, and the amount of oil released to the international market has been correspondingly reduced, resulting in an imbalance
in the supply relationship.

On the day of the release of crude oil reserves in the United States, the price of crude oil futures (WTI) on the New York Mercantile Exchange and the price of Brent crude oil futures in London rose by 2.
28% and 3.
27%
respectively.
Why did oil prices rise instead of falling on the same day?

"The release of strategic stocks in the United States is already in the market's expectations, the market has priced in this expectation in advance, and this release of reserves is far less than the market's expectations
.
" Dong Kangyin, deputy head of the Department of Energy and Low-carbon Economics at the School of International Economics and Economics of the University of International Business and Economics, believes that the release of crude oil reserves is mainly to cope with the impact of oil supply and abnormal rise in oil prices, but it is difficult to solve the fundamental contradiction
between supply and demand.
At present, the demand for oil in the northern hemisphere has increased sharply in winter, but the supply is relatively scarce, and the scale of this strategic inventory release is not large, which is not enough to change the supply and demand structure and suppress oil prices
.

"Some countries, including major members of the Organization of the Petroleum Exporting Countries (OPEC), have not reacted much
to the release of crude oil stocks by the United States.
" Guo Yi believes that this phenomenon also reflects the ability of some countries to control international oil prices and the appeal of coordinated action with oil-producing countries is declining
.

So, what impact will the release of crude oil reserves from many countries have on China?

"At present, the release of crude oil reserves has not had much impact
on China.
" Dong Kangyin said that China is a big consumer and importer of oil, and the decline in oil prices will be conducive to China's development
.
Even if the final effect of releasing crude oil reserves is very small, in the face of high oil prices, China's foreign exchange reserves are sufficient and are still within the affordable range
.

On November 24, Chinese Foreign Ministry spokesman Zhao Lijian said at a regular press conference that China will arrange the release of national reserve crude oil according to its own actual conditions and needs, as well as take other necessary measures to maintain market stability, and release relevant information
in a timely manner.

"By investing its own strategic reserve oil, it can calm the impact
of imported inflation caused by the rise in international oil prices.
" Guo Yi believes that for China, it is necessary to pay close attention to and rationally analyze the different forces that trigger the fluctuation of crude oil prices in the international market, and at the same time take some positive measures to stabilize the fluctuations of international oil prices, such as increasing the supply of domestic crude oil reserves, so as to ensure the healthy and sustainable development
of its own economy.

According to Xinhua News Agency on November 26, South Africa's health department announced on the 25th that a new variant of the new coronavirus was found in the country
.
Affected by the news, crude oil suffered a heavy setback, as of press time, WTI crude oil futures fell 13.
139%, London Brent crude oil futures fell 11.
369%.

"The main reason for the decline in crude oil on November 26 was the market panic caused by the epidemic, which had little to do with the release of crude oil reserves by the United States
.
" Dong Kangyin said that the short-term fluctuations in the market caused by emergencies do not represent the real impact
of the release of crude oil reserves.
Therefore, the timing, quantity and method of China's release of crude oil reserves still need to be further watched and determined
in due course.