US moves to release more oil stockpiles under IEA agreement

"The transfer comes after US President Donald Trump's administration agreed in March to release 172 million barrels of crude as part of the IEA's coordination of the largest unloading of global stockpiles in history. Oil prices have surged since the US and Israel launched their war on Iran in late February, with Tehran's retaliatory blockade of the Strait of Hormuz paralysing one of the world's most important trade routes."

The US Department of Energy started transferring 53.3 million barrels from the Strategic Petroleum Reserve after awarding emergency exchange contracts to nine companies. Trafigura Trading LLC received nearly 13 million barrels, while Marathon Petroleum Corporation and ExxonMobil were set to receive 12.4 million and 11.4 million barrels, respectively. Other recipients received between 1.05 million and 6.55 million barrels each. Participating firms must replenish the stockpile with new barrels later. The transfers aim to move oil quickly into the market, address near-term supply needs, and keep the Strategic Petroleum Reserve strong through the return of premium barrels. The action follows a March agreement to release 172 million barrels as part of coordinated global stockpile unloading. Oil prices rose after the US and Israel launched their war on Iran, with Tehran’s blockade of the Strait of Hormuz disrupting a major trade route.

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