U.S. to release 50 million barrels of crude oil

The White House on Tuesday said that the United States is set to release a huge batch of 50 million barrels of crude oil from its Strategic Petroleum reserve- the emergency reserve. The move is in action for cooling the rising oil prices. It will hit the market between mid to late December this year.

The release will be in the form of a loan and a sale. The move is in cooperation with other countries’ releases from strategic reserves including India, China, Japan, Britain and South Korea. This is the first time ine history when the U.S. has coordinated releases with some of the largest oil consumers in the world.

The Strategic Petroleum Reserve is an emergency supply to secure oil access amidst uninvited events like natural disasters, security issues and other such events. These reserves are maintained by the US Department of Energy. There are caverns created in salt domes in which these reserves are stored along the Texas and Louisiana Gulf Coasts.

Currently, there are roughly 605 million barrels of petroleum in the reserve. Therefore, they will be left with approximately 555 million barrels of crude oil after this release.

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