U.S. To Sell Up To 45Mn Bbls Oil From Reserve As Part Of Historic Release

• The U.S. Department of Energy on Tuesday (June 14) said it was selling up to 45Mn barrels of oil from the Strategic Petroleum Reserve as part of the Biden administration's previously announced, largest-ever release from the stockpile. 
• Deliveries of crude from the SPR sale would take place from Aug. 16 through Sept. 30. The Biden administration said in late March it would release a record 1Mn barrels of oil per day for six months from the SPR. 
• The release was meant to help control oil prices that spiked after Russia, one of the world's top petroleum producers, invaded Ukraine and as the West imposes sanctions on Moscow. Prices for global benchmark Brent crude have marched higher since the March 31 announcement to trade above $120 a barrel. The rise has come as few global oil producers have spare capacity ,while consumers emerging from the pandemic are driving fuel demand. 
• Biden administration officials have said the oil price could be higher if the SPR had not been tapped. But the release has also driven the level of the reserve to the lowest point since 1987, adding to worries about tight global oil markets, despite the United States having more in the stockpile than required under international agreements.

(Source: Reuters)