USA has decided to resort to its largest energy reserve to try to cool the oil market. The Department of Energy announced this Wednesday, a measure with which Washington seeks to stop the escalation of prices caused by the war in Middle East.
The Secretary of Energy, Chris Wright, He explained that the decision has been authorized by him and that the release will begin next week.
“Based on expected discharge rates, delivery will take approximately 120 days,” Wright said in a statement.
A global response to the rise in crude oil prices
The United States’ decision comes accompanied by another measure of great international reach. The International Energy Agency (IEA) also announced this Wednesday the gradual release of 400 million barrels of oil from the strategic reserves of its member countries.
The initiative was unanimously approved by the 32 States that are part of the organization and represents the largest release of reserves in the history of the IEA, created after the oil crisis of 1973.
The closest precedent came in 2022, when a similar measure was activated after the Russian invasion of Ukraine.
The market remains tense
However,
Texas Intermediate Oil (WTI) It rose 7.87% this Wednesday, to $92.84 per barrel, reflecting that investors continue to observe the global energy situation with concern.
Only in this Wednesday’s session, WTI futures contracts for delivery in April added 6.77 additional dollars, after having already risen 4.55% in the previous day.
The increase in price indicates that the release of reserves, a measure designed to increase supply and contain the cost of crude oil, has not completely calmed the market’s fears.
The Strait of Hormuz, at the center of the crisis
The epicenter of energy tension, the strategic maritime passage controlled by Iran through which approximately 20% of the world’s oil transits, in addition to important shipments of liquefied natural gas and strategic minerals.
The war in the Middle East and threats from the Iranian Revolutionary Guard have reduced crude oil trafficking in the area and Uncertainty about global supply triggered.
To try to guarantee the transportation of oil, the trump government announced that the insurance giant Chubb will be the main company in charge of covering ships that cross the strait within a new maritime protection program.
The tension in the region was evident this Wednesday, when three ships off the coast of Iran were hit by projectiles, according to the United Kingdom Maritime Trade Operations Centre.
Energy insurance for times of crisis
The United States Strategic Petroleum Reserve functions as an energy cushion for emergency situations. Its reserves are stored in gigantic underground caverns in Texas and Louisiana and are designed to stabilize the market in times of crisis.
Now, with the conflict in Middle East threatening the global energy flow, Washington and its allies are trying to use this mechanism to prevent the escalation of oil prices from translating into a greater economic crisis.
But for now, the crude oil market continues to watch with trepidation towards the Strait of Hormuz
