US authorises emergency release of up to 400,000 oil barrels

The US Department of Energy has approved an exchange of as many as 400,000 barrels of crude from the Strategic Petroleum Reserve for Phillips 66’s Lake Charles refinery in Louisiana. Business Recorder reported the move is intended to address a supply interruption affecting deliveries to the facility. A Phillips 66 spokesperson confirmed the refinery would receive the reserve crude.

The Lake Charles site can process about 264,000 barrels daily, and the department said the exchange should help sustain transport-fuel output for Louisiana and nearby markets. Phillips 66 said it did not expect the disruption to affect the refinery’s operations, while declining to discuss operating or commercial details.

The US reserve is already at its lowest level since 1982, after releases under both Donald Trump and Joe Biden amid disruptions connected with the Iran war and Russia’s invasion of Ukraine. The latest release therefore combines a local supply response with continued use of the national stockpile.