US unleashes 86 million barrels from oil reserves in emergency move
Replenishment of supplies will be next year (Photo: Getty Images)
The Trump administration has begun the process of a massive withdrawal of oil from the US strategic reserves. A request is planned to release 86 million barrels of crude oil, reports Bloomberg.
In a Friday statement, the Energy Ministry said that the deliveries from the strategic petroleum reserve are part of the massive 172-million-barrel oil release announced on Wednesday. The oil is expected to reach the market by the end of next week.
Under the terms of the agreement, companies will have to return the borrowed oil to the Energy Ministry, with additional barrels added as compensation.
The withdrawal is expected to last four months in total and is part of an initiative coordinated with other countries to release 400 million barrels. The idea is aimed at lowering prices for oil, gasoline, diesel, and jet fuel, which have sharply increased following the US and Israel's invasion of Iran.
The war has virtually halted shipping in the Strait of Hormuz, through which approximately one-fifth of the world's oil supplies pass.
Regarding the allocation of 172 million barrels of oil, the Energy Ministry previously stated that the White House has taken steps to replenish the withdrawn oil reserves by approximately 200 million barrels over the next year. They clarified that the volume of replenishment will exceed the volume of withdrawals by 20%.
Strait of Hormuz and permission to buy Russian oil
Tonight, CNN sources said that Iran is considering allowing a certain number of oil tankers to pass through the Strait of Hormuz. But this will only happen if the cargo trade is conducted in Chinese yuan.
At the same time, as is known, the US Treasury Department has lifted restrictions on the purchase of Russian oil to stabilize the market. This refers to permission to export oil that was loaded onto tankers before March 12. The permit will be valid until April 11.
