US to withdraw more oil from emergency stockpile as country faces rising fuel prices
The US on Tuesday said it would release more oil from the country's emergency stockpile in an effort to contain rising fuel prices due to energy supply disruptions from the Iran war. The Energy Department said it was offering to loan energy companies up to 40 million barrels of crude oil from the Strategic Petroleum Reserve . The offer represents the last of the drawdown of 172 million barrels…
The United States has announced it will release additional oil from its emergency stockpile to address the increase in fuel prices caused by disruptions in energy supply resulting from the Iran war. The Energy Department provided up to 40 million barrels of crude oil from the Strategic Petroleum Reserve (SPR), marking the final reduction of 172 million barrels from the reserve ordered in March.
The final drawdown is set to be completed by October 6, according to the department. Energy Secretary Chris Wright stated that these actions are part of coordinated efforts to stabilize oil markets for American and global benefit. The SPR is expected to reach its lowest level since 1982 after the completion of the drawdown. As of September 19, the reserve had 284.5 million barrels, below the generally accepted minimum operational level of 250 million barrels.
The US joined other International Energy Agency (IEA) members in withdrawing 172 million barrels in March to counter rising energy prices due to the closure of the Strait of Hormuz and attacks on energy sites in the Gulf. However, the US alleged that several European members had only partially fulfilled their pledged oil releases.
IEA chief Fatih Birol attended an EU energy meeting in Brussels to discuss the potential for further reserve releases. European Energy Commissioner Dan Jorgensen also mentioned ongoing discussions with IEA chief Birol about additional stock releases. Rising petrol costs have been fueled by the US and Israel's co-ordinated strikes on Iran on February 28, leading to a $4 per gallon average price, compared to $3 per gallon a year ago.
Diesel prices have similarly surged, breaching $6 per gallon, up from $2.5 per gallon a year prior. President Donald Trump has been considering a diesel export ban to alleviate price pressures, but the proposal has faced resistance from the US energy industry, which warns it could exacerbate market instability and consumer hardships.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
