US Energy Secretary Chris Wright said in an interview with Fox Business that companies that borrowed oil from the Strategic Petroleum Reserve during recent months will return the quantities in the form of crude with added premiums, raising the reserve's
inventory by around 40 million barrels after the war with Iran ends.
Wright clarified that his country is not selling any barrels of oil but rather pumping quantities into the market in the short term when needed and then swapping these barrels, noting that every barrel pumped will be recovered at a
rate of 1.25 barrels, and that 40 million barrels will be added to the Strategic Petroleum Reserve after the conflict ends at no cost to taxpayers within already concluded deals.
Wright clarified that his country is not selling any barrels of oil but rather pumping quantities into the market in the short term when needed and then swapping these barrels, noting that every barrel pumped will be recovered at a rate of 1.25 barrels, and that 40 million barrels will be added to the Strategic Petroleum Reserve after the conflict ends at no cost to taxpayers within already concluded deals.
The US Department of Energy is lending around 133 million barrels from the Strategic Petroleum Reserve stored in underground caverns in Texas and Louisiana to companies that will repay the quantities in the form of crude oil with premiums reaching
24%, with the department saying this system will help stabilize markets without burdening American taxpayers.
The US Department of Energy is lending around 133 million barrels from the Strategic Petroleum Reserve stored in underground caverns in Texas and Louisiana to companies that will repay the quantities in the form of crude oil with premiums reaching 24%, with the department saying this system will help stabilize markets without burdening American taxpayers.
Fuel prices have risen sharply since the outbreak of the war with Iran, but Wright affirmed he is not concerned about inventory levels in the Strategic Petroleum Reserve despite them still being at low levels.
