U.S. Strategic Petroleum Reserve Release Aims to Stabilize Oil Markets
The United States will release 172 million barrels of crude oil from the Strategic Petroleum Reserve starting next week. The decision follows an emergency agreement among International Energy Agency member states to release a combined 400 million barrels from strategic reserves.
The US Department of Energy confirmed the plan on Wednesday.
Rising Risk for Tanker Shipping
Security threats in the Middle East pushed governments to act. Commercial shipping faces new risks in the Strait of Hormuz, one of the world’s most important oil shipping routes.
Roughly 20 percent of global seaborne crude moves through the narrow waterway. Any disruption to tanker traffic can quickly affect global oil supply and freight markets.
Energy Secretary Chris Wright said the US release will take about 120 days. The plan spreads the supply over several months to support the market.
Wright also said that 32 IEA member countries supported the coordinated release. President Donald Trump requested the joint action to address the risk to global energy flows.
The Department of Energy will supply 172 million barrels as part of the wider international response.
Oil Prices Surge After Tanker Incidents
Oil prices rose sharply after new reports of attacks on commercial vessels. Several tankers were reportedly struck by projectiles in the Persian Gulf overnight.
Brent crude briefly moved above 100 dollars per barrel in after hours trading. US West Texas Intermediate climbed to 94.38 dollars.
The planned release equals roughly 1.4 million barrels per day over four months. Analysts say the pace of supply could influence how strongly the measure affects the market.
Plan to Refill the Strategic Petroleum Reserve
The administration also plans to rebuild the reserve. Officials said the government intends to purchase about 200 million barrels over the next year.
The goal is to restore the emergency stockpile while maintaining energy security.
The Strategic Petroleum Reserve sits in underground salt caverns along the US Gulf Coast. It remains the largest emergency crude stockpile in the world.
Market stability will depend on more than reserve releases. Tanker safety in the Strait of Hormuz remains the critical factor for global oil shipping.
