SINGAPORE: It’s been almost three weeks since the United States unveiled an internationally coordinated release of oil from national reserves, but so far there’s been little follow through from the other five nations.

       President Joe Biden said on Nov 23 that the country would release 50 million barrels of crude from its Strategic Petroleum Reserve (SPR) in “the next several months.” The unprecedented move would be done in parallel with China, Japan, South Korea, India and the UK, he said.

       While the United States has granted its first release of SPR oil to Exxon Mobil Corp, and intends to issue another sale notice for 18 million barrels this week, there’s been radio silence from the other participants.

       That’s starting to prompt some scepticism in the market about whether they’ll go ahead at all, particularly after the Omicron virus variant led to a sharp drop in global prices.

       The Asian nations’ participation, in what looks like a buyers’ cartel, puts them in a tough spot, said John Driscoll, chief strategist at JTD Energy Services Pte.

       “They can’t afford to jeopardise their relationships with major producers to satisfy a US president who’ll be up for re-election in a few years,” he said.

       They may also “be reluctant to tap into their reserves ahead of peak winter demand, when supply disruptions can lead to major issues,” Driscoll said.

       The joint release was unprecedented, given that there was no supply shock, and followed weeks of intensive lobbying by Biden after the Opec+ alliance rebuffed calls to increase supply faster. It contributed to a decline in prices leading up to the announcement, but many in the market were underwhelmed by the volumes that the countries other than the United States pledged to release.

       India was the only Asian nation that was definitive on volume, pledging to release five million barrels, although questions remain on timing. The head of Indian Strategic Petroleum Reserves Ltd said Dec 3 that he was still waiting for advice from the federal government on how and when to sell the crude. Japan has given no details on volumes or timing, although the Nikkei newspaper reported last month the country would release around 4.2 million barrels. — Bloomberg