The United States will transfer 870,000 barrels of oil from its strategic reserve to Shell Trading (US) Company, which is Shell's US market subsidiary. This was reported by the US Department of Energy, reports Reuters.
“The US Department of Energy has approved <...> the transfer of 870 thousand barrels of oil from the strategic reserve of Shell Trading (US) Company,” the message says.
The transfer is carried out under the so-called exchange procedure, which involves the company borrowing oil from the country's oil reserve for a short period of time, and later is obliged to return it in full, as well as taking into account a "surcharge depending on the length of time during which it holds oil,” the agency notes.
On December 17, the United States began selling oil from reserve stocks in order to stabilize gasoline prices at gas stations. The volume of the first batch sold amounted to 18 million barrels. From this period to January 12, four such transactions have already been concluded.
The fact that the United States will use the strategic oil reserve and release 50 million barrels of it from it was announced by President Joe Biden at the end of November. Thus, Washington intends to correct the balance between supply and demand and achieve a reduction in gasoline prices. Japan has also announced the sale of part of its oil reserves following the US. Washington argued that China, India, South Korea, and the UK could make the same decision.