U.S. seeks to swap 17 million barrels of strategic oil reserves

The U.S. Department of Energy has requested bids to swap up to 17 million barrels of crude oil from the Strategic Petroleum Reserve (SPR). This move is part of a global agreement established in March involving approximately 30 International Energy Agency member countries to release 400 million barrels from global reserves to stabilize fuel prices.

Oil prices have recently seen upward pressure, with Brent crude futures rising toward $110 per barrel and U.S. crude exceeding $100 per barrel, driven by Middle East supply concerns and disruptions at a Russian refinery. While the U.S. previously attempted a similar release in June, companies only agreed to withdraw about 500,000 barrels due to disagreements over required premiums.

In the context of regional tensions and the potential closure of the Strait of Hormuz, Saudi Aramco CEO Amin Nasser noted that the East-West Pipeline has played a critical role in mitigating price spikes. Nasser stated that without the capacity of the 1,200-kilometer pipeline, which transports oil from the Eastern Province to the Red Sea, Brent crude prices could have reached $200 per barrel.