ABNA24 - The US Department of Energy announced the release of 53.3 million barrels of oil from the Strategic Petroleum Reserve (SPR) on Monday to loan energy firms, part of a global effort to stabilise oil prices following the US-Israeli war against Iran.The latest release is part of a larger US commitment to add 172 million barrels to the global market.
That pledge, announced in March as part of an International Energy Agency (IEA) initiative involving more than 30 countries, aimed to add approximately 400 million barrels of oil to the global market.
Iran’s closure of the Strait of Hormuz, a vital waterway which carried 20% of the world’s oil and natural gas supply prior to the conflict, has raised oil prices and caused inflationary pressure across the global economy. Crude prices are up around 45%, or some $30 a barrel, since the war started.To date, approximately 35 million barrels have been delivered to the market from the SPR, according to the energy department.
The US SPR is the world’s largest supply of emergency crude oil.
The reserve has been maintained by the federal government since 1975 to help protect the US economy from major disruptions in petroleum supply.While some producers, including Saudi Arabia and the United Arab Emirates, have found alternative routes for their exports, around 10-12 million barrels of crude remain choked off from global markets per day, according to analysts.World oil consumption was around 103 million barrels per day last year based on preliminary estimates from the US Energy Information Administration.
Your Comment