By Sunday Elom
As part of efforts to reduce the rising price of fuel, the United States of America Department of Energy has disclosed that it will sell 18 million barrels of crude oil from its Strategic Petroleum Reserves (SPR) on December 17, 2021.
Recall that President Joe Biden-led administration had in November announced that it would release about 50 million barrels of crude oil from its reserves in conjunction with other countries including China, India and South Korea in order to reduce prices of gasoline.
Media reports revealed that despite oil global market being influenced by numerous factors including the recent emergence of the Omicron variant of COVID-19, US government has been making frantic efforts to douse Americans’ worries about the rising costs of fuel and its accompanying inflation caused generally by COVID-19 pandemic.
According to US Energy Secretary, Jennifer Granholm, “The President rightly believes Americans deserve relief now and has authorized the use of the SPR to respond to market imbalances and reduce costs for consumers.”
A report by Hart Energy stated that the 18 million barrels had previously been approved by the US Congress; out of which, the remaining barrels will be released in the coming months through exchanges. The exchanges would be returned to the SPR with interest.
US Energy department further stated that the first exchange of 4.8 million barrels will be with the US largest oil company, Exxon Mobil Corporation.
The department noted that “As DOE moves forward with the sale, exchange requests will continue to be accepted from interested parties and approved as appropriate to address supply disruptions.”
It is important to note that as one of the world’s biggest oil producing countries, US sell of 18 million barrels of crude oil from its strategic petroleum reserve where it holds about 600 million barrels of crude oil in giant caverns in Texas and Louisiana, could have impact international oil market directly or indirectly.
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