The administration of President Trump said Wednesday it will release 172 million barrels of crude oil from the nation’s strategic petroleum reserve to help lower the price of oil which surged because of the U.S.-Israeli war in Iran. It’s part of an effort by International Energy Agency to release 400 million barrels from emergency stockpiles of about 30 countries.
U.S. energy secretary Chris Wright said withdrawals will begin next week and continue for about 120 days in an attempt to lower prices after Iranian attacks on tankers in the Strait of Hormuz.
The SPR at four locations on the Gulf Coast (Big Hill and Bryan Mound in Texas and Bayou Choctaw and West Hackberry in Louisiana) currently holds about 415 million barrels (capacity 714 million barrels). Wright said the administration plans to replace the released oil with 200 million barrels in the next year. SPR is designed to release up to 4.4 million barrels per day, although actual flows are likely to be smaller.