The US will move to produce more oil under the IEA agreement | US-Israel War on Iran News

The US Department of Energy will move 53.3 million barrels in response to rising oil prices.

The United States has announced its latest release of emergency oil reserves in cooperation with the International Energy Agency (IEA).

The US Department of Energy said on Monday it had begun moving 53.3 million barrels from storage facilities after awarding contracts to nine companies under its emergency replacement program.

Trafigura Trading LLC, a Texas-based commodity trading company, was awarded the largest supply of about 13 million barrels, while Marathon Petroleum Corporation and ExxonMobil are expected to receive 12.4 million barrels and 11.4 million barrels, respectively.

Macquarie Commodities Trading US, Atlantic Trading & Marketing, BP Products North America, Energy Transfer Crude Marketing, Mercuria Energy America and Phillips 66 will receive between 1.05 million and 6.55 million barrels each, according to the Department of Energy.

Under the department’s exchange plan, participating companies are required to fill the stockpile with new barrels in the future.

“These actions continue to move oil more quickly into the market, address short-term supply needs, and ensure the Strategic Petroleum Reserve remains strong by returning high-value barrels,” Kyle Haustveit, director of the Hydrocarbons and Geothermal Energy Office, said in a statement.

The transfer comes after US President Donald Trump’s administration agreed in March to release 172 million barrels of food as part of the war effort. The IEA’s consensus on the biggest downloads of international databases in history.

Oil prices have risen since the US and Israel launched their war on Iran at the end of February, with Tehran retaliating by closing the Strait of Hormuz, blocking one of the world’s most important trade routes.

Maritime traffic in the strait has come to a halt amid Iran’s threats against commercial vessels, disrupting a fifth of the world’s oil trade.

Oil prices continued to rise on Monday after Trump rejected Iran’s latest peace proposal and warned that a ceasefire between the two sides was “on life support”, dimming hopes of a quick resolution to the conflict.

In the face of growing public discontent over rising oil prices, Trump on Monday also promised to eliminate the 18.4 cents per gallon gasoline tax, although the tax is still pending in the US Congress.

Brent crude futures, the global benchmark, were up nearly 1 percent in Asia on Tuesday morning, above $105 a barrel.