Houston – Nearly half of the crude oil released from the US Strategic Petroleum Reserve is being exported, a fresh sign of how severely global supplies have tightened amid the Iran war.
About 13 million barrels from the US emergency stockpile have sailed to Europe and other destinations, according to data from Kpler based on US Customs’ documents. That represents roughly 40 per cent of the crude released so far from the reserve.
The last tanker to load crude from the SPR was the Kyrakatingo, which took 700,000 barrels of Bryan Mound Sour oil, a variety named after one of the four underground salt caverns where US emergency supplies are stored.
It’s not uncommon for oil from the emergency cache to be exported. In 2022, after Russia’s invasion of Ukraine disrupted global oil flows, traders shipped almost 21 million barrels from the SPR to refiners in Europe and Asia, or roughly 10 per cent of the total release. Still, the scale of exports this time highlights the strain on global crude markets after the near closure of the Strait of Hormuz.
The Trump administration pledged to release 172 million barrels from the reserve as part of a broader effort by advanced economies to ease the strain of the Iran war on global energy markets. So far, the United States has agreed to loan 133 million barrels, with more than half snatched by trading companies. Trafigura Group alone secured about a quarter of that.
The oil is being released in batches between March and August, and so far, only 31.3 million barrels have effectively left the caverns, according to the Energy Department.
The release comes at a pivotal moment for President Donald Trump, whose administration is trying to negotiate a peace deal with Iran while confronting rising fuel costs at home. Prices at US pumps have soared 50 per cent since the start of the war to around US$4.50 a gallon. At the same time, American refiners are poised to boost crude intake ahead of the summer driving season, when demand for the fuel peaks.
Oil prices headed for a weekly gain as a US naval blockade of Iran’s ports remains in place, while the waters in the region continue to be treacherous for mariners. Brent crude rose toward US$107 a barrel, with futures up around 5 per cent this week. West Texas Intermediate was near US$102. BLOOMBERG
