According to the department, the oil will be distributed from the Bayou Choctaw, Bryan Mound, Big Hill, and West Hackberry storage sites. Deliveries are set to begin immediately, with around 35 million barrels already supplied to the market. The decision is the next step in the release of a total of 172 million barrels onto the market from US reserves as part of coordinated measures by the International Energy Agency (IEA) to stabilize global oil supplies, the department said. Earlier in March, the IEA announced the release of 400 million barrels of emergency oil reserves in response to escalating tensions between the United States and Iran in the Persian Gulf. The conflict has disrupted shipping through the Strait of Hormuz a critical route for global oil and LNG exports – driving oil prices above $100 per barrel.
By the end of February, the US Strategic Petroleum Reserve held slightly more than 415 million barrels. Following the planned release, reserves could drop below 250 million barrels, marking their lowest level since the Department of Energy began publishing weekly inventory data in 1982. The reserve had already fallen below 400 million barrels by the end of April.
MNA
