US Releases 4 Million Barrels From Strategic Oil Reserve After Gulf Weather Disruptions

The US Department of Energy has authorised the release of up to four million barrels of crude oil from the Strategic Petroleum Reserve to help refineries maintain operations and limit fuel supply disruptions caused by severe weather in the Gulf of America.

Under the emergency exchange arrangement, ExxonMobil and BP America will each receive up to two million barrels. The companies are required to return the borrowed crude oil, along with additional barrels as a premium, in 2027, replenishing the reserve at no additional cost to taxpayers.

Energy Secretary Chris Wright said the measure was intended to help maintain refinery operations and ensure continued access to fuel for households and businesses.

The department said the exchanges would also strengthen the reserve by requiring the companies to return more oil than they receive, generating additional barrels for the government stockpile.

ExxonMobil’s exchange will accelerate deliveries of crude oil previously awarded from the reserve to meet immediate supply requirements, according to the department.

The Strategic Petroleum Reserve is the US government’s emergency stockpile of crude oil, intended to help address supply disruptions and support energy security. The department said it would continue working with industry partners to maintain fuel supplies and respond to weather-related disruptions in the Gulf.

Source: FSX Business News