US to release 172 million barrels of oil from strategic reserve — Energy Department
The move comes in an effort to reduce oil prices that skyrocketed due to US-Israel war on Iran.
The Trump administration has said it will release 172 million barrels of oil from its strategic petroleum reserve in an attempt to reduce oil prices that skyrocketed due to the supply shock from the US-Israel war on Iran.
"Earlier today, 32 member nations of the International Energy Agency unanimously agreed to President Trump’s request to lower energy prices with a coordinated release of 400 million barrels of oil and refined products from their respective reserves," Secretary of Energy Chris Wright said in a statement on Wednesday.
"As part of this effort, President Trump authorised the Department of Energy to release 172 million barrels from the Strategic Petroleum Reserve, beginning next week. This will take approximately 120 days to deliver based on planned discharge rates."
Wright also blamed the Biden administration, claiming it left the US energy drained and damaged.
"The United States has arranged to more than replace these strategic reserves with approximately 200 million barrels within the next year—20% more barrels than will be drawn down—and at no cost to the taxpayer," he said.
He said that Iran "manipulated and threatened" the energy security of the US, adding that those days are "coming to an end."
Largest release
The decision comes after the International Energy Agency said member countries had agreed to release oil supplies to address major disruptions caused by the US-Israel war on Iran.
The agency said it would release 400 million barrels of oil from strategic stockpiles — the largest coordinated release in the more than 50-year history of the organisation.
The United States is a member of the International Energy Agency along with more than 30 economies across Europe, North America and Northeast Asia.
The US currently holds about 415 million barrels of oil in its Strategic Petroleum Reserve, roughly 58 percent of its authorised capacity of 714 million barrels.
Interior Secretary Doug Burgum earlier said the decision on whether Washington would participate in the IEA action ultimately rests with the president.