US to Release More Oil Stockpiles Under International Energy Agreement

US Department of Energy Announces Oil Stockpile Transfer

The United States Department of Energy has begun transferring 53.3 million barrels from its strategic petroleum reserve as part of an emergency exchange programme. The move is coordinated with the International Energy Agency (IEA) and aims to address near-term supply needs in the global oil market.

Nine companies have been awarded contracts under the department’s scheme, including Trafigura Trading LLC, which will receive nearly 13 million barrels, followed by Marathon Petroleum Corporation and ExxonMobil, each receiving around 12.4 million barrels. Other participating firms will receive between 1.05 million and 6.55 million barrels.

The Energy Department stated that the participating companies are required to replenish the stockpile with new barrels at a later date. The transfer is part of an ongoing effort by the US administration to address rising oil prices, which have surged since the conflict in Iran began in late February.

As tensions between the US and Iran escalate, maritime traffic in the Strait of Hormuz has been disrupted, affecting about one-fifth of global oil trade. Oil prices continued to rise on Monday after US President Donald Trump dismissed Iran’s latest peace proposal and warned that the ceasefire was “on life support”.

The transfer is part of a larger effort by the US to manage its emergency stockpiles in response to rising fuel prices. The department’s head, Kyle Haustveit, stated that the actions aim to ensure the Strategic Petroleum Reserve remains strong through the return of premium barrels.

Futures for Brent crude, the international benchmark, were up about 1 percent on Tuesday morning, topping $105 a barrel.

Source: Al Jazeera