US Taps Emergency Oil Reserves in Bid to Contain Soaring Fuel Prices
The US Energy Department has announced plans to release more oil from the country's emergency stockpile in an effort to contain rising fuel prices due to energy supply disruptions from the Iran war.
The department is offering to loan up to 40 million barrels of crude oil from the Strategic Petroleum Reserve, which represents the last of the drawdown of 172 million barrels ordered in March. This comes as European countries have been accused of releasing only a fraction of the pledged energy supplies, with the US urging every member country to fulfill its commitments.
The SPR is projected to fall to its lowest levels since 1982 once the drawdown is completed, with most recent government data recording reserve inventories at 284.5 million barrels for the week ending September 19. The generally accepted minimum level for safe operations is 250 million barrels.