The US Department of Energy said on December 11 that it would release 18 million barrels of crude oil from the strategic petroleum reserve (SPR) on December 17, Reuters reported. The release is part of the Biden administration’s plan to alleviate retail fuel prices. Last month, the administration announced the release of 50 million barrels of SPR crude in a coordinated effort with China, India, Japan, and South Korea to tackle the rising energy costs.
The US SPR release includes up to 32 million barrels that would be delivered in mid-December through April, with selected buyers required to return them in 2022-2024. This exchange will come in addition to 18 million barrels approved by Congress to be sold by the end of 2022. In its Friday announcement, the DOE said it had approved the first exchange of 4.8 million barrels with Exxon Mobil Corp.
Oil prices hit seven-year highs of over $86 per barrel in late October as global fuel demand recovered from the COVID-19 pandemic. However, prices have dropped by nearly 13% since, partially due to the US announcement and concerns over the coronavirus Omicron variant. The Brent benchmark settled 1% higher at $75.15 per barrel on Friday.
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Published on December 13, 2021 11:39 AM (GMT+8)Last Updated on December 13, 2021 11:39 AM (GMT+8)
