Oil prices drop as Biden considers releasing reserves

Global energy supplies had been tightening for months as economies started to reopen as they relaxed pandemic lockdown measures.

Russia is the world’s second-biggest oil exporter after Saudi Arabia.

Most other major energy producing nations are either at full capacity or are unwilling to increase output.

The US, which is the world’s largest oil producer, is currently pumping out 11.7 million barrels of oil a day, but that is not enough to meet global demand.

Meanwhile, the International Energy Agency has called an emergency meeting for Friday.

It is unclear whether other IEA members – which include 29 nations such as the UK, France, Germany and Japan – will follow the US by releasing oil reserves.

The country’s industry minister said the actions include government support to boost domestic production, alternative procurement and to help technological developments to reduce use of the materials, which include liquefied natural gas and gases used in computer chip-making.