US releases another wave of emergency oil as petrol prices bite

HOUSTON - The US Strategic Petroleum Reserve (SPR) awarded 53.3 million barrels to companies including oil trader Trafigura Group and US refiner Marathon Petroleum, adding to a wave of oil released to help tame surging prices stemming from the Iran war.

Trafigura is taking the largest haul of nearly 13 million barrels, followed by Marathon and ExxonMobil, the US Energy Department said on May 11.

Near-record volumes of government oil are flowing to market in a bid to rein in prices at the pump ahead of the busy summer driving season.

The average national price for regular petrol has surged since the US and Israel attacked Iran on Feb 28, topping US$4.50 a gallon for the first time since July 2022. US President Donald Trump said on May 11 that he would seek to suspend the federal 18.4 US cents a gallon tax on petrol “until it’s appropriate” – a measure that would result in billions of dollars in lost tax revenue each month, according to independent budget analysts.

The oil will be released between June and August, when refiners crank up as petrol demand peaks. Volumes from the second-largest ever SPR sale are part of a global effort led by the International Energy Agency to lower global oil prices. 

Last week, the US released a record 1.22 million barrels a day of oil as part of the initiative. 

The Trump administration committed to releasing 172 million barrels in a so-called exchange programme, where oil is loaned to companies and must be returned in kind at a later date. So far, the US has agreed to release 133.1 million barrels. It is unclear if the Energy Department will hold another offer until it meets the 172 million-barrel target. 

Not all the oil remains in the US. Part of it is being exported to Europe and South America. BLOOMBERG