(Reuters) – Two sources claim that the United States might release 1 million barrels per day of oil from the U.S. Strategic Petroleum Reserve over several months. It would be the third use of this reserve by the Biden administration in the past six months.

Prices for oil have shot up in the last weeks. Brent rose from $109 per barrel to $139 in March following Russia’s invasion and the subsequent US and NATO sanctions against Ukraine. Although prices have fallen, Brent traded at $109 on Thursday in Asia early trading.

Oil supplies around the world have been decreasing for many months. These problems were exacerbated recently by fears that Russian oil exports might fall by as much as 1 million to 3,000,000 barrels per day. Russia is second in crude exports after Saudi Arabia.

As the supply of crude oil continues to tighten, most other large producers have either reached capacity or declined to boost their production. Although the United States is the largest crude oil producer in the world, it still produces less than half of what is needed to satisfy global demand.

Current U.S. Strategic Petroleum Reserve is 568.3 millions barrels.

The International Energy Agency includes 29 countries, including Japan and France. It’s not clear if any other member nations will be following the United States. A Friday emergency meeting has been called by the IEA.

In response to the rising price of oil in 2021, the United States declared a 50 million barrel release. However, a expected Chinese move was not realized. Along with the United States of America, the IEA announced that it would release 60 millions barrels in the first week after the Russian invasion.

The Reason Why

Oil released in the year 2000

Oil – Unknown

Markets will determine the 2022 market value due to continuing

United States said that disruptions occurred in the after

Russia sanctions to Russia: 1 Mln barrels

per day

60 mln Tightening

2022 Barrels from IEA Oil Markets After

Russia was one of the invaders in Ukraine.

30 Mln USD from the U.S./allies

The United States has sanctioned Russia

2021 50,000,000 barrels. Concerns about higher

Prices in the United States during fragile

States’ recovery from the worst

Coronavirus amts not yet determined. Not

China, India and China coordinated w/ IEA.

Japan, Korea, UK

2011, 60,000,000 barrels. Loss in crude oil supply

30 million dollars coming from disruptions

United Libya, and Other

In the States

2005 60 Mln BBLs with Supply Disruptions

2.8% mln after Hurricane Katrina

United States

1991 17.3 million U.S.

barrels disruptions during

After the Persian Gulf War

Iraq invaded Kuwait

The United States occasionally releases oil by itself, or sometimes via Congressionally mandated sales.

Washington also made loans to private businesses through similar exchange agreements. This was often done in the aftermath of natural disasters. Companies are required to pay back by a specific date and receive additional premium barrels of interest.

Year Reason

Published

2017 Supply Disruptions: 5.2 Mio.

Barrels damaged by Hurricane Harvey

2012. 1 Mln BBLs Supply disruptions

Hurricane Isaac

2008. 5.4 Mln BBLs Supply disruptions

Hurricanes Gustav, Ike

2006 750,000 bbls Calcasieu Ship Channel

Closing

2006. 767,000 BBLs Closure in Sabine

Neches Ship Channel from

a barge accident

5.8 Mln BBLs Disruptions in Supply

Hurricane Katrina

2004 5.4 Mln BBLs Supply disruptions

Hurricane Ivan

2002 98,000 bbls Supplies disruptions

Hurricane Lili

2000 About 30 mln To establish an emergency

U.S. bbls Fuel Source

Northeast

2000 1 mln bbls Calcasieu Ship Channel

Closing

1999 11 mln bbls To exchange crude grades

Maya crude

1996 900,416 bbls ARCO Pipe Line Company

Blockage