China will make crude oil available from its strategic domestic reserves in light of the Lunar New Year vacation that begins February 1 as part of a plan coordinated by the United States with other major consumers to reduce international prices.

Sources close to the matter, quoted by Reuters, said that China agreed in late 2021 to unlock an unspecified amount of oil, depending on price levels.

"China has agreed [with the US] to release a relatively high amount of oil if the price is above $85 per barrel, and a smaller volume if oil stays near the $75 level" the sources said without further details.

The release of reserves agreed to by China is the result of a series of discussions the Biden administration held with other major oil consumers, following supply constraints that drove world oil prices to multi-year highs.

The United States has held crude oil swaps and sales from its reserves in recent weeks, while Japan and South Korea have also announced plans for crude oil sales.

China, which has long kept details of its state reserves secret, last September conducted its first public auction of crude oil reserves of about 7.4 million barrels.

Oil prices rebounded above $80 a barrel this week, driven by supply disruptions in Libya and Kazakhstan.