US to Release 40 Million Barrels of Crude Oil via Exchange Mechanism

The U.S. Department of Energy's Office of Petroleum Reserves has issued a solicitation to release up to 40 million barrels of crude oil into the market through an exchange mechanism.

This move is expected to increase short-term spot supply, putting downward pressure on spot prices in the physical market.

However, the exchange mechanism implies a future need to replenish strategic reserves, which will limit the long-term impact of this release.