US Continues to Release Oil from Strategic Reserve Under IEA Agreement
John Power
The US Department of Energy announced the transfer of 53.3 million barrels of oil from the Strategic Petroleum Reserve to nine companies, the latest move in coordinated efforts with the IEA to cool soaring oil prices amid geopolitical tensions. The release follows a larger 172-million-barrel plan approved by the Trump administration in March as part of the IEA's largest-ever coordinated reserve drawdown.
The United States has announced a new release of crude oil from its Strategic Petroleum Reserve, coordinated with the International Energy Agency (IEA). The move comes as global oil prices remain elevated due to tensions in the Middle East.
On March 31, the US Department of Energy said it had begun transferring 53.3 million barrels of oil from the strategic reserve after awarding contracts to nine companies under the emergency exchange program.
Trafigura Trading LLC, a commodities trading firm based in Texas, received the largest volume at nearly 13 million barrels. It was followed by Marathon Petroleum Corporation and ExxonMobil, receiving 12.4 million and 11.4 million barrels, respectively.
According to the US Department of Energy, the remaining companies include Macquarie Commodities Trading US, Atlantic Trading & Marketing, BP Products North America, Energy Transfer Crude Marketing, Mercuria Energy America, and Phillips 66, each receiving between 1.05 million and 6.55 million barrels.
Under the terms of the exchange program, participating companies must return the reserve with new crude oil at a later date.
Kyle Haustveit, head of the Office of Hydrocarbons and Geothermal Energy at the Department of Energy, said: “These actions continue to bring oil to market quickly, addressing short-term supply needs and ensuring the Strategic Petroleum Reserve remains strong through the recovery of premium barrels.”
This transfer follows the Trump administration’s agreement in March to release 172 million barrels of crude oil as part of the IEA’s coordinated plan for the largest strategic reserve release in history.
Oil prices have surged since the US and Israel launched a military campaign against Iran in late February. Tehran retaliated by blockading the Strait of Hormuz, crippling one of the world's most vital trade routes.
Shipping activity in the Strait of Hormuz has nearly ground to a halt due to Iranian threats against commercial vessels, disrupting about one-fifth of global oil trade.
Oil prices edged higher on March 31 after Trump rejected Iran's latest peace proposal and warned the ceasefire between the parties was “tenuous at best”, dampening hopes for a quick resolution to the conflict.
Amid growing public discontent over high fuel prices, Trump also pledged to waive the federal 18.4-cent-per-gallon gasoline tax, though the power to levy the tax lies with the US Congress.
International benchmark Brent crude rose about 1% in Asian trading on the morning of April 1, exceeding $105 per barrel.
