US Releases Oil Reserves: The ongoing conflict in the Middle East has caused a sharp surge in oil prices, sending shock-waves throughout the market. Meanwhile, the United States Department of Energy has announced plans to release 172 million barrels of oil from its Strategic Petroleum Reserve starting next week, a release that will take approximately 120 days, depending on discharge rates. Following the plunge in crude oil prices and attacks on ships transiting the Strait, many countries, including the United States, are facing losses and supply disruptions.
IEA strategic oil reserves
Previously, the International Energy Agency (IEA) announced the release of 40 million barrels of oil from the emergency reserves of its 32 member countries to address supply disruptions caused by the conflict. Emergency reserves will be released to the market based on each member country’s national circumstances, and additional emergency measures by some governments will be implemented to supplement these supplies. IEA member countries collectively hold over 1.2 billion barrels of emergency reserves, as well as approximately 60 million barrels of oil held by industry under government obligations.
US Releases Oil Reserves
Global benchmark Brent crude prices rose 4.8% to $91.98 per barrel. Escalating tensions near the strategic Strait of Hormuz, a vital sea passage for 20 percent of global oil supplies, have shaken energy markets and forced international governments to release emergency reserves and impose limited controls on US supplies. Iran’s retaliatory actions, including drones and missiles, have virtually paralysed shipping traffic through the Strait.
Also Read- Iran warns Ships could be targeted; Permission required to Pass through Strait of Hormuz
