The administration of U.S. President Joe Biden asked big oil buyers like China, India and Japan to consider releasing crude stockpiles. China said it is working on a release of its crude reserves, while Japan and South Korea are reviewing the U.S. request.
In addition, Brent's premium to Dubai quotes has also cooled from eight-year highs hit earlier this month, and could make crude from the Atlantic Basin more affordable to Asian buyers again. "Prices did come off, so I guess the threat of one is more effective than actually doing it," said a senior crude trader in Singapore.
"I think it spooked the Shandong refineries, so all in all it's translating to a slowdown in the market," a second trader said. "Any oil released from the Chinese SPR needs to be refilled within 90 days," Energy Aspects analysts said in a note.