U.S. to Release 172 Million Barrels of Oil in Step with IEA Reserve Move

[Financial News] The government of the United States of America (U.S.) announced that it will release oil from its strategic reserves, in line with the International Energy Agency (IEA)’s decision to tap emergency stockpiles to stabilize global oil prices.
Christopher Allen Wright, U.S. Secretary of Energy, said in interviews with local media on the 11th (local time) that the U.S. will release 172 million barrels from its strategic petroleum reserve (SPR). He explained that this volume will be supplied to the market over about 120 days starting next week.
The International Energy Agency (IEA), which includes 32 member countries such as South Korea and the U.S., announced the same day that it plans to supply a total of 400 million barrels from public emergency oil reserves held by member states to the market in order to stabilize prices.
Fatih Birol, Executive Director of the IEA, stated at the Group of Seven (G7) finance ministers’ meeting on the 9th that IEA member countries currently hold more than 1.2 billion barrels in emergency reserves. He added that, separately from this, companies in member states are storing another 600 million barrels in mandatory reserves under national regulations. The Wall Street Journal (WSJ) reported that the total volume Birol referred to is equivalent to 124 days’ worth of oil, based on the amount that Saudi Arabia, Iraq and other Arab oil producers around the Persian Gulf supply to the global market.
At present, the U.S. is storing 415 million barrels of crude oil in its SPR. This is roughly the amount the world would consume in about four days.
During a visit to Cincinnati in the U.S. state of Ohio on the 11th, Donald Trump was asked in an interview with local broadcaster WKRC-TV whether the U.S. would release oil from its reserves. He replied, "We will do that." He added, "And then we will fill it back up."
pjw@fnnews.com Reporter Park Jong-won Reporter