US releases another wave of emergency oil as gas prices bite

The US Strategic Petroleum Reserve awarded 53.3 million barrels to companies including oil trader Trafigura Group and US refiner Marathon Petroleum Corp, adding to a wave of oil released to help tame surging prices stemming from the Iran war.

Trafigura is taking the largest haul of nearly 13 million barrels, followed by Marathon and Exxon Mobil Corp, the US Energy Department said Monday. Near-record volumes of government oil are flowing to market in a bid to rein in prices at the pump ahead of the busy summer driving season.

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The average national price for regular gasoline has surged since the US and Israel attacked Iran in February, topping $4.50 a gallon for the first time since July 2022. President Donald Trump said on Monday that he’d seek to suspend the federal 18.4 cents a gallon tax on gasoline “until it’s appropriate” — a measure that would result in billions of dollars in lost tax revenue each month, according to independent budget analysts.

The oil will be released between June and August, when refiners crank up as gasoline demand peaks. Volumes from the second-largest ever SPR sale are part of a global effort led by the International Energy Agency to lower global oil prices.

Last week, the US released a record 1.22 million barrels a day of oil as part of the initiative.

The Trump administration committed to release 172 million barrels in a so-called exchange program, where oil is loaned to companies and must be returned in kind at a later date. So far the US has agreed to release 133.1 million barrels. It’s unclear if the energy department will hold another offer until it meets the 172 million-barrel target.

Not all the oil remains in the US. Part of it is being exported to Europe and South America.