US to release more crude from SPR amid Middle East conflict
The US Department of Energy (DOE) has issued a Request for Proposal (RFP) for an emergency exchange of up to 92.5 million bbls of crude oil from its Strategic Petroleum Reserves (SPR).
IMAGE: Crude oil storage tanks. Getty Images
The move continues the DOE’s rollout of the US’ 172 million bbls contribution to the International Energy Agency’s (IEA) coordinated effort to stabilise global oil supplies amid the Middle East conflict.
In April, the DOE released about 26.03 million bbls of crude oil from its West Hackberry site to domestic refiners including BP, ExxonMobil, Shell, Marathon Petroleum, Vitol, and more.
The latest SPR action builds on three previous emergency exchange RFPs of about 80 million bbls from the Bayou Choctaw, Bryan Mound, Big Hill and West Hackberry sites, the DOE said.
“Under DOE’s exchange authority, participating companies will return the borrowed 92.5-million-barrels of crude with additional premium barrels,” the agency added.
The move is expected to ensure the SPR grows beyond current levels, while delivering immediate supply to refiners and the global oil market, according to the DOE. Bids for the solicitation will end before 4 May, the DOE said.
The US SPR stands at around 398 million bbls as of 24 April, according to US Energy Information Administration (EIA) data.
By Aparupa Mazumder
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