The US has authorized the emergency release of up to 400,000 barrels of crude oil from the strategic oil reserve for the Phillips 66 refinery in Lake Charles, Louisiana. The measure is intended to offset temporary supply disruptions and support transportation fuel production in Louisiana and neighboring markets.
“The provision of the oil will help offset temporary supply disruptions to the refinery and support transportation fuel production in Louisiana and neighboring markets,“ the U.S. Department of Energy said.
The refinery processes up to 264,000 barrels per day
The “Phillips 66“ refinery in Lake Charles has a processing capacity of about 264,000 barrels of crude oil per day, Reuters reported. The release of additional quantities is related to disruptions in the supply of raw materials, but the cause of the problem has not been specified.
„Phillips 66“ did not respond to a request for comment on the need for additional quantities of oil. It was not announced how many of the authorized up to 400,000 barrels will be provided to the refinery.
The reserve is at its lowest level since 1982.
The US Strategic Petroleum Reserve is now at its lowest level since 1982. According to Reuters, its use came after disruption of oil supply chains due to the war with Iran.
The strategic reserve was previously used by the Joe Biden administration after the full-scale Russian invasion of Ukraine. The new release is aimed at a specific supply problem for a Louisiana refinery, and is not being announced as a general release of oil to the market.
The amount of the release is equivalent to approximately one and a half days of the refinery's maximum daily capacity. The effect on fuel production will depend on when regular supplies are restored and how much of the additional oil is used.
Sources: bta.bg