News Around Nigeria Today

US, China to aid the fall of oil prices



Pulse Contributor Seye Omidiora

The Asian country is set to release oil from its reserves to quell rising prices around the world.

The recent increase in oil prices worldwide is set to be short-lived as China and the United States are seeking ways to help crash the prices again.

The rising prices started to fall as early as Wednesday when news started to filter around about China’s plan to release a significant amount from its reserves to help quell the supply shortages that led to the skyrocketing prices that were experienced recently.

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The virtual summit between both countries that are top players in the energy market was where the plans to flood the market with oil from their reserves was prepared.

Investors are speculating that the market is expecting about 20-30 million barrels to be supplied from the states’ oil reserves to help make the prices more accessible to consumers around the world.

Although there are still reservations in the market about the solution being proposed by both countries only able to offer temporary respite. It is believed that to keep the prices down for a long and sustained period there will need to be a consistent supply of about 1 million more barrels per day.

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Joe Biden, the American president has been receiving flak for the rising petrol prices in the country and has thus made him motivated to investigate and sort out the situation that is leading to the price increase being experienced in the country and around the world.

The need to strike a balance between fossil fuel production and avoiding an impending climate crisis forced a reduction in oil production in America recently.

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There have however been calls from different quarters for that production to resume if oil prices are going to crash in America and around the world.

Seye Omidiora is a passionate football writer and pundit whose deep appreciation for the beautiful game exceeds the usual. He is currently a columnist for Goal Africa and has previously written for Vital Football UK, IBCity Info and Opera News.

Pulse Contributors is an initiative to highlight diverse journalistic voices. Pulse Contributors do not represent the company Pulse and contribute on their own behalf.

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