Crude oil from state reserves will be up for sale at auction in China for the first time, the National Food and Strategic Reserves Administration reported on Thursday
BEIJING (Pakistan Point News / Sputnik - 09th September, 2021) Crude oil from state reserves will be up for sale at auction in China for the first time, the National food and Strategic Reserves Administration reported on Thursday.
"The National Food and Strategic Reserves Administration of the PRC will introduce state reserves of crude oil into the market for the first time," the statement said.
Releasing crude oil onto the market in order to "ease the pressure on production plants due to the rise in prices for raw materials" will take place in several stages. Chinese refineries will become buyers for the reserve oil.
Putting crude oil from national reserves up for auction will allow the country "to better stabilize supply and demand", as well as "to guarantee national energy security," the administration noted.
According to trade data, world oil prices fell more than 1.5% after the announcement.
