US Releases Oil to Cut Prices
The US will release 172 million barrels of oil. This oil comes from its emergency oil reserve.
Oil prices rose sharply. The US-Israeli war with Iran reduced oil supply.
Energy Secretary Chris Wright announced the release. It is part of a bigger plan by 32 countries.
Together, those countries will release 400 million barrels total. The US currently holds 415 million barrels in reserve.
Klear Note — The strategic petroleum reserve is oil the US government keeps for emergencies. When oil prices spike, releasing reserve oil helps lower prices at gas pumps.
Key Terms 3
- strategic petroleum reserve emergency oil supply stored underground by the US government
- International Energy Agency group of 32 countries that share energy resources and plans
- barrels unit used to measure oil; one barrel equals about 159 litres