FX.co ★ Biden seeks China’s help

As the saying goes, "All's fair in love and war." Even seeking the help of a former enemy might not seem an extreme measure in times of the greatest need. Joe Bidden is well aware of this. Therefore, after OPEC’s refusal to increase oil output, Biden did not give up his plan. He decided to appeal to President Xi Jinping.

Before the start of the OPEC+ meeting, President Joe Biden blamed Russia and OPEC for the current high oil prices. "If you take a look at gas prices and you take a look at oil prices that's a consequence of thus far the refusal of Russia or the OPEC nations to pump more oil," he said. He called on OPEC nations to pump more crude. However, cartel members did not agree to increase oil production and decided to adhere to the previously established policy. Having failed to reach a consensus with OPEC, Joe Biden decided to seek China’s help. Notably, China is one of the world's main oil consumers.

During a virtual meeting, Biden asked China to release crude oil from its strategic reserves to stabilize rising oil prices. The US President is sure that if both countries simultaneously release oil from their strategic reserves, it will help increase the supply in domestic markets. Regardless of China's decision, the US is going to release oil from the strategic petroleum reserves at the end of November. Xi Jinping expressed his readiness to mull over this proposal. Yet, he is hesitant to make any commitments as the government should assess the country's domestic oil needs.