US to Tap Strategic Petroleum Reserve

President Donald Trump announced Wednesday that the United States will release crude oil from its Strategic Petroleum Reserve (SPR) to mitigate rising oil prices. This decision follows a surge in crude prices to four-year highs, driven by Iranian attacks on oil tankers in the Strait of Hormuz. The specific volume and timing of the release were not disclosed.

The announcement comes on the same day the International Energy Agency (IEA) confirmed a coordinated release of 400 million barrels of oil from its 32 member countries. It remains unclear whether the U.S. action is part of this IEA initiative or an additional measure. The SPR currently holds 415 million barrels, representing less than 59% of its capacity. Previous drawdowns by the Biden administration and subsequent damage to storage caverns have impacted the reserve's refilling efforts.

The SPR is designed to release up to 4.4 million barrels per day within 13 days of a presidential directive. However, analysts suggest the actual flow rate could be lower, potentially around 2 million barrels per day, due to physical infrastructure constraints.