JAKARTA - The US Department of Energy said it would release 53.3 million barrels of oil from its strategic oil reserves as part of efforts to stabilize global fuel supplies.
"The US Department of Energy (DOE) today announced the award of contracts for the exchange of approximately 53.3 million barrels of crude oil from the Strategic Oil Reserve (SPR) locations of Bayou Choctaw, Bryan Mound, Big Hill, and West Hackberry," according to the statement.
Deliveries will begin immediately, the department said, with about 35 million barrels having been sent to the market so far.
The decision is a follow-up to the total release of 172 million barrels to the market from US reserves as part of coordinated measures by the International Energy Agency (IEA) to stabilize global oil supplies, the department said.
In March, the IEA said it would release 400 million barrels of emergency oil stocks due to the situation in the Middle East.
US and Israeli military operations against Iran have effectively halted shipments through the Strait of Hormuz, the main route for global oil and LNG supplies from Gulf countries.
Oil prices have surpassed $100 a barrel amid events in the Middle East.
At the end of February, U.S. strategic reserves were just above 415 million barrels.
After the planned release, the reserves could fall below 250 million barrels, potentially reaching the lowest point in history since the US Department of Energy began collecting weekly inventory data in August 1982.
By the end of April, the strategic reserve had dropped below 400 million barrels.
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