U.S. Energy Department Releases Strategic Oil Reserves Amid Global Crisis

The U.S. Energy Department plans to loan up to 10 million barrels of crude oil from its strategic reserve in Bryan Mound as part of an international effort to alleviate oil supply pressures caused by the Iran war. This move is part of a larger agreement involving 32 countries under the International Energy Agency.

The U.S. Energy Department announced on Wednesday its plan to loan as much as 10 million barrels of crude oil from the strategic petroleum reserve located at Bryan Mound. The department will entertain proposals from companies until 11 am central time on April 6.

This release of oil is part of an agreement with 32 countries in the International Energy Agency, collectively looking to release 400 million barrels of reserves in response to supply challenges due to the ongoing Iran war.

Already, the U.S. has lent 45.2 million barrels of oil in the first phase of the agreement initiated in March. The ultimate goal is to lend out 172 million barrels to be delivered throughout the rest of the year. The Energy Department ensures that the processes involved will impose no cost on American taxpayers, stabilizing markets through loans returned with additional barrels as a premium.

(With inputs from agencies.)