The U.S. Department of Energy will release up to 40 million barrels from the Strategic Petroleum Reserve, the last tranche since the Iran War, and urges European allies to fulfill their commitments.
The U.S. Department of Energy announced it will release up to an additional 40 million barrels of crude oil from the Strategic Petroleum Reserve (SPR). This is the final tranche of the 172 million barrels cumulatively released by the U.S. under the coordination of the International Energy Agency since the outbreak of the Iran War. Energy Secretary Chris Wright publicly criticized some European countries, stating that their committed release volumes were far below expectations, and urged member states to fulfill their commitments. The immediate backdrop for this release is rapidly escalating energy prices, with gasoline prices remaining above $4 per gallon and diesel prices breaking the historical record of $6 per gallon. Following this release, the U.S. Strategic Petroleum Reserve is projected to fall to its lowest level since 1982, approaching multiple legal and operational constraints. Chris Wright had previously signaled that further use of the reserves after this release is unlikely. This release will utilize an "exchange" mechanism, requiring participating companies to return the borrowed crude oil with interest in the future. The Department of Energy anticipates approximately 200 million barrels of crude oil will flow back into the reserve over the next year.
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