US funding bill blocks China from purchasing petroleum reserve oil - WION
US funding bill blocks China from purchasing petroleum reserve oil - Business & Economy News
US funding bill blocks China from purchasing petroleum reserve oil
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Lawmakers, driven by bipartisan sentiment, have prioritised addressing concerns regarding China's access to vital US strategic resources, including oil reserves. Multiple bills have been introduced, aimed at curbing China's influence.
Following a bipartisan consensus, the newly unveiled US funding legislation includes a provision barring China from acquiring oil from the Strategic Petroleum Reserve.
This measure highlights intensifying competition and geopolitical tensions between the United States and China.
Lawmakers, driven by bipartisan sentiment, have prioritised addressing concerns regarding China's access to vital US strategic resources, including oil reserves. Multiple bills have been introduced, aimed at curbing China's influence.
The issue gained prominence following President Joe Biden's decision in 2022 to authorize the sale of 180 million barrels of SPR oil to stabilize gasoline prices in the aftermath of Russia's invasion of Ukraine.
Concerns were raised after a portion of SPR oil was sold to Chinese entities, including UNIPEC America and PetroChina International, prompting calls for legislative action to restrict such transactions.
The Strategic Petroleum Reserve, holding over 360 million barrels of oil, plays a critical role in safeguarding US energy security.
However, recent sales, including those to China, have depleted the reserve to nearly 40-year lows.
Last July, the Senate passed a bill with a strong majority, aiming to prevent the export of SPR oil to China.
Senator Chris Murphy emphasised the need for decisive action to address strategic vulnerabilities and protect US interests.
The funding bill, comprising 1,050 pages, outlines appropriations for various government sectors, including the energy domain.
Congressional negotiators intend to swiftly advance the bill through the legislative process, with the House expected to vote on it first.
Senate Majority Leader Chuck Schumer highlighted the urgency of the matter, urging prompt action to address critical funding allocations before the impending deadline.
(With inputs from Reuters)
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