Updated March 4th, 2024 at 10:32 IST

US bill bars China from buying oil from Strategic Petroleum Reserve

Notably, in 2017, the SPR sold oil to PetroChina International, a subsidiary of Chinese state oil company PetroChina Co Ltd.

Reported by: Business Desk
Representative | Image:Unsplash
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US blocks China from buying oil: A provision in the US funding legislation introduced by congressional leaders on Sunday aims to prohibit China from acquiring oil from the Strategic Petroleum Reserve.

The stance against China remains one of the few bipartisan sentiments in the deeply divided US Congress, with lawmakers proposing numerous bills to address competition with China's government.

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The issue of sales from the Strategic Petroleum Reserve to China gained prominence after President Joe Biden announced the sale of 180 million barrels of SPR oil in 2022 to stabilise gasoline prices following Russia's invasion of Ukraine.

Notably, in 2017, the SPR sold oil to PetroChina International, a subsidiary of Chinese state oil company PetroChina Co Ltd.

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Currently, the SPR holds over 360 million barrels of oil but is nearing 40-year lows due to the sales in 2022.

Last July, the Democratic-controlled Senate passed a bill, with a vote of 85 to 14, to prohibit exports of SPR oil to China. 

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Senator Chris Murphy expressed concerns about the efficacy of the measure, suggesting it might have little political impact and could potentially do more harm than good.

In 2022, US oil companies sold 83 million barrels of oil to China.

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The 1,050-page bill unveiled on Sunday outlines funding for six government segments, with the remainder expected later in the month.

The US House will vote on the bill first, followed by the Senate before Friday, according to Senate Majority Leader Chuck Schumer. 

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The House is scheduled to reconvene in Washington on Tuesday.

(With Reuters Inputs)

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Published March 4th, 2024 at 10:32 IST