US to release 53.3 million barrels of its strategic reserves

The US Department of Energy announced plans to release 53.3 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) to help stabilize global fuel supplies.

The move comes as part of a global agreement to mitigate energy market disruptions caused by the war in the Middle East.

This comes after nine companies, including ExxonMobil and Trafigura, borrowed only 58% of the 92.5 million barrels the Department of Energy offered to lend them from the reserve last month.

This move complements the Department's efforts, which already lent approximately 80 million barrels this spring, as part of its push to release a total of 172 million barrels. This release is part of a larger U.S. commitment agreed upon last March with more than 30 countries at the International Energy Agency to release nearly 400 million barrels.

The Department of Energy's mechanism for releasing oil from the Strategic Petroleum Reserve relies on a direct lending system for energy companies. Under this system, companies are provided with specific quantities of crude oil to address supply shortages or price volatility, with the obligation to repay the borrowed quantities in kind.