Energy & Resources
US authorizes 4m-barrel oil reserve release after Isaias
The United States authorized the release of up to four million barrels of crude oil from its Strategic Petroleum Reserve on Saturday, October 10, to offset supply disruption caused by storm Isaias in the country's southeast.
Under the emergency exchange, ExxonMobil and BP American can each receive up to two million barrels to help keep refinery operations running, Energy Secretary Chris Wright said in a Department of Energy statement.
The Department of Energy said the companies must return the crude to the Strategic Petroleum Reserve in 2027 and provide an additional premium amount beyond what they borrowed.
Isaias made landfall in Florida on Friday as a Category 2 hurricane and disrupted oil production in the US Gulf coast region.
The reserve had already been tapped after US and Israeli strikes on Iran in late February. Since then, 132 million barrels have been withdrawn from the 415 million-barrel reserve, and Washington has pledged to gradually release 172 million barrels.
Uncertainty notes
The final volume released may be less than the authorized maximum of four million barrels.
The exact scale and duration of the storm-related supply disruption were not quantified.
The source did not specify the premium amount the companies must return in 2027.
Source
AFP news report published on .