America's First Batch of Emergency-Released Reserve Oil to Enter Market

The first batch of the 172 million barrels of oil reserve that U.S. President Donald Trump plans to release urgently is about to hit the market. This is the latest government move to curb fuel prices.

According to the U.S. Department of Energy documents, approximately 45 million barrels of oil are being released from the Strategic Petroleum Reserve (SPR). This means that refiners and traders have subscribed to about half of the initial 86 million barrels offered by the government.

Amid soaring oil prices, with Brent crude surpassing $100 per barrel, the level of subscription interest in this release has surprised market participants. The Iran conflict has nearly halted oil shipments through the Strait of Hormuz, which accounts for about 20% of global oil transportation.

However, the benchmark U.S. crude oil price (WTI) has remained significantly below Brent, partly because the large-scale release from the emergency reserves has boosted supply prospects for refiners along the Gulf Coast.

Despite this, U.S. retail gasoline prices have risen to nearly four-year highs, intensifying concerns about accelerating inflation.

This oil stock release is part of an emergency relief plan coordinated by the International Energy Agency (IEA), aimed at reducing energy costs. At least 30 countries are releasing up to 400 million barrels of oil.