China says it will release oil reserves according to its needs

Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018.

China will release crude oil from its reserves according to its needs, a foreign ministry spokesman said on Wednesday, adding that the country was in close communication with oil-producing and oil-consuming countries.

The United States said on Tuesday that it will release millions of barrels of oil from strategic reserves in coordination with China and other Asian nations to try to cool prices after OPEC+ producers repeatedly ignored calls for more crude output. 

China's National Food and Strategic Reserves Administration confirmed to Reuters last week that it was working on a release of oil stocks but declined to comment on the U.S. request.

Speaking in a daily press briefing, foreign ministry spokesman Zhao Lijian again declined to comment on whether China was participating in the oil stocks releases coordinated by the United States.

"The Chinese side will organise a release of crude oil from state reserves according to its own actual needs," said Zhao, adding that it would publish relevant information without delay.

Zhao said that China would maintain communication and co-operation to ensure the long-term stability of the oil market.

Source: Reuters / Reporting by Yew Lun Tian Writing by Dominique Patton Editing by Himani Sarkar and David Goodman