US to Release 172M Barrels from Oil Reserve in Global Price Stabilization Move

The announcement came from the US Department of Energy after 32 member nations of the International Energy Agency agreed to release a combined 400 million barrels of oil and refined products from national reserves to increase supply.

"Earlier today, 32 member nations of the International Energy Agency unanimously agreed to President Trump's request to lower energy prices with a coordinated release of 400 million barrels of oil and refined products from their respective reserves," US Energy Secretary Chris Wright said in a statement released by the Department of Energy.

"As part of this effort, President Trump authorised the Department of Energy to release 172 million barrels from the Strategic Petroleum Reserve, beginning next week. This will take approximately 120 days to deliver based on planned discharge rates."

According to the Energy Department, the release will begin next week and take about 4 months to complete, based on planned discharge rates.

President Donald Trump had earlier indicated the move during an interview with a local television station while visiting Ohio to promote his economic policies.

"We'll do that, and then we'll fill it up," Trump said of tapping the strategic reserve. "Right now, we'll reduce it a little bit, and that brings the prices down."

The plan is part of a broader international effort led by the International Energy Agency to inject additional oil into the global market amid surging prices and geopolitical tensions.

Oil prices rose on Wednesday, with Brent crude -- the global benchmark -- approaching $100 per barrel after trading below $90 earlier in the day, according to market data.

Gasoline prices in the United States have also climbed steadily. The national average reached $3.58 per gallon after rising for 11 consecutive days.

The announcement comes as tensions in the Middle East disrupt global energy markets and raise concerns about shipping through the Strait of Hormuz, a critical oil transit route.

In his statement, Wright said the administration would replenish the reserve after the drawdown and argued the move demonstrated a commitment to energy security.

"President Trump promised to protect America's energy security by managing the Strategic Petroleum Reserve responsibly, and this action demonstrates his commitment to that promise," Wright said.

"Unlike the previous administration, which left America's oil reserves drained and damaged, the United States has arranged to more than replace these strategic reserves with approximately 200 million barrels within the next year -- 20 per cent more barrels than will be drawn down -- and at no cost to the taxpayer."

He also linked the move to broader tensions involving Iran.

"For 47 years, Iran and its terrorist proxies have been intent on killing Americans. They have manipulated and threatened the energy security of America and its allies. Under President Trump, those days are coming to an end," Wright said.

"Rest assured, America's energy security is as strong as ever."

The Strategic Petroleum Reserve was created in the 1970s after the Arab oil embargo to provide emergency supplies during major disruptions in global energy markets. It remains the largest emergency crude oil stockpile in the world.

- IANS