The US Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to seven companies as part of President Joe Biden's effort to help control oil prices.
Report informs, citing Reuters, that the Biden administration announced a plan in November to release up to 50 million barrels from the SPR after oil prices hit seven-year highs. Nearly 40 million barrels of that has now been released through previous exchanges and a sale of 18 million barrels.
The companies are: Shell Trading US (RDSa.L), 4.2 million barrels; Trafigura Trading LLC, a unit of Farringford NV, 3 million barrels; Phillips 66 (PSX.N), 2.3 million barrels; Macquarie Commodities Trading, 2 million barrels; Chevron USA (CVX.N), 885,000 barrels; Exxon Mobil (XOM.N), 515,000 barrels; and BP Products North America , 500,000 barrels.
Companies that take part in exchanges have to return the oil to the reserve, held in a series of caverns on the Texas and Louisiana coasts, at a later date with interest in the form of crude.