US to release up to 400,000 barrels of oil from strategic reserve

The US Department of Energy has authorized the release of up to 400,000 barrels of oil from the Strategic Petroleum Reserve to address supply disruptions at the Phillips 66 refinery in Louisiana.

According to Report, the US Department of Energy said in a statement that the oil will be supplied immediately to the Lake Charles refinery from the West Hackberry storage facility in Louisiana, according to the statement.

The oil will be provided under an exchange arrangement. Phillips 66 will be required to return the oil, along with an additional premium, replenishing the strategic reserve at no extra cost to taxpayers.

US Deputy Secretary of Energy Kyle Haustveit said the measure would help maintain refinery operations, ensure stable fuel supplies and mitigate the effects of temporary disruptions in crude oil deliveries.