First US Oil Barrels From Emergency Release to Hit Market
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Article content(Bloomberg) — The first oil from US President Donald Trump’s planned 172 million-barrel emergency release is set to start flowing soon, the latest move in the administration’s battle to keep fuel prices in check. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentRoughly 45 million barrels are being released from the US Strategic Petroleum Reserve, according to a document from the US Energy Department. That means that refiners and traders subscribed to about half of the 86 million barrels initially offered by the administration.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe level of interest in the volume of oil on offer was surprisingly low considering that Brent crude has traded above $100 a barrel, traders said. The war in Iran has led to a virtual halt in shipments through the Strait of Hormuz, through which 20% of global oil transits, with Brent closing at more than $112 on Friday. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentStill, the US crude benchmark — West Texas Intermediate — has been trading at a steep discount relative to Brent, and that’s partly because the giant release of American emergency reserves is bolstering the supply outlook for Gulf Coast refiners. Article contentEven then, US retail gasoline prices have climbed to their highest in nearly four years, stoking fears over accelerating inflation. Trump is facing intense political pressure to address the sudden rise in fuel prices. November’s midterm elections that will decide control of both houses of Congress hinge in large part on Americans’ attitudes toward the costs of living, and polls show the public taking a dim view of the president’s handling of the economy.Article contentThe stockpile release is part of relief plan coordinated by the International Energy Agency aimed at lowering energy costs. At least 30 nations are releasing as much as 400 million barrels.Article contentUnder the terms of the exchange offer, eight companies, including refiners and traders, will borrow 45.22 million barrels from the emergency cache and should return it to the government’s underground caverns, with a premium of at least 18%, as late as 2028. Shell PLC’s trading arm was awarded the biggest amount, with 16.2 million barrels, followed by Trafigura Group, Marathon Petroleum Corp and BP Plc. Article content(Updates with more context and Brent closing price in 3rd paragraph.)Article contentTrending Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas This TSX space and defence stock is a bright spot in an otherwise struggling index Investor Public-private partnership launches $1.3-billion fund to purchase unsold GTA condos Real Estate Trans Mountain readies expansion in 2027 as pipeline space fills up Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas This TSX space and defence stock is a bright spot in an otherwise struggling index Investor Public-private partnership launches $1.3-billion fund to purchase unsold GTA condos Real Estate Trans Mountain readies expansion in 2027 as pipeline space fills up Oil & Gas