Trump Panics? 172 Million Barrels of US Oil Forced Out Due to War
The United States government has officially announced that it will release 172 million barrels from the Strategic Petroleum Reserve to suppress soaring energy costs caused by the Iran war. US Energy Secretary Chris Wright made the crucial announcement on Wednesday evening local time.
Wright explained that the process of releasing hundreds of millions of barrels of oil will commence the following week. However, approximately 120 days will be required to complete all shipments.
Wright emphasised that the step taken by the United States is an integral part of global coordination initiated by the International Energy Agency. The US is an active member of the IEA alongside more than 30 other developed economies across Europe, North America, and Northeast Asia.
“The release of US reserves is part of the broader IEA effort,” Wright stated, as reported by AFP on Thursday.
This move aligns with President Donald Trump’s previous statement. He affirmed that he would utilise emergency oil reserves to maintain energy price stability.
“We will do that, and then we will refill it,” Trump said in an interview with Cincinnati broadcaster WKRC.
Trump added that he has a track record in managing the nation’s strategic oil reserves during his tenure. He believes this step is the most effective short-term solution for intervening in the turbulent market.
“I filled it once, and I will fill it again, but right now, we will reduce it slightly, and that will lower the price,” Trump said.
According to data from the AAA driving group, petrol prices in America have surged to an average of US$3.58 (Rp 60,502) per gallon following massive disruptions to global oil supply due to the Iran war. Current retail prices are recorded as nearly 22% higher compared to the same period last month, when petrol was at the level of US$2.94 (Rp 49,686).
Currently, America holds 415 million barrels in its oil reserves, or approximately 58% of the official total capacity of 714 million barrels. Previously, Trump had levelled sharp criticism at former President Joe Biden for using these reserves during his tenure.
Wright stated that the Trump administration is committed to maintaining national energy security despite the large-scale drawdown of reserves. The government plans to conduct replenishment to ensure stocks return to safe levels in the near term.
“The Trump administration will replace the released oil with 200 million barrels within the next year at no cost to taxpayers,” Wright said.
Trump’s decision came after the International Energy Agency agreed on Wednesday to release a total of 400 million barrels of oil to address global supply disruptions. This action is recorded as the largest reserve oil release in more than 50 years of the IEA’s existence.