The United States on Saturday authorized the release of four million barrels of crude oil from strategic reserves. This move helps ExxonMobil and BP maintain refinery operations after Hurricane Isaias caused supply disruptions. The companies must return the borrowed oil by 2027, along with an extra premium for the government.
The United States authorised the release of up to four million barrels of crude oil from its Strategic Petroleum Reserve to help ExxonMobil and BP maintain refinery operations amid supply disruptions caused by Hurricane Isaias. The companies must replenish the borrowed oil in 2027, with an additional premium, the Energy Department said.
Washington: The United States on Saturday authorized the release of up to four million barrels of crude oil from its strategic reserves to offset supply disruptions caused by storm Isaias in the country's southeast.
As part of the "emergency exchange," ExxonMobil and BP American can each receive up to two million barrels "to help maintain refinery operations," Energy Secretary Chris Wright was quoted as saying in a statement released by his department.
The two oil giants will be required to return crude to the Strategic Petroleum Reserve (SPR) in 2027, contributing a "premium" amount beyond what was borrowed, the Department of Energy said.
Oil production in the US Gulf coast region has been severely disrupted by Isaias, which made landfall in Florida on Friday as a Category 2 hurricane.
The SPR has already been tapped since the US war with Iran shocked energy markets, with the backstock reaching its lowest level since 1982.
Since the US and Israel launched strikes on Iran in late February, 132 million barrels have been withdrawn from the 415 million in reserve. Washington has pledged to gradually release 172 million barrels.