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<Commodity>US Releases First Batch of 45.2M Barrels from Strategic Petroleum Reserve; Oil Firms to Pay 18-22% Premium on Return
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Last Friday (20th), the US released the first batch of 45.2 million barrels of crude oil from its Strategic Petroleum Reserve to oil companies, accounting for 52% of the government's previously announced plan to release a total of 86 million barrels. The US plans to release a total of 172 million barrels of oil reserves this year and next. The US Department of Energy stated that the companies receiving the first batch from the Strategic Petroleum Reserve include BP Products North America, a subsidiary of BP, Gunvor USA, Marathon Petroleum Corporation (MPC.US), and Shell. The companies will pay an additional premium of 18-22% when returning the crude oil and may even propose to repay more oil to secure government contracts. The US Department of Energy indicated that this mechanism aims to stabilize the market without increasing the burden on US taxpayers and stated that the process will increase the Strategic Petroleum Reserve by nearly 10 million barrels of crude oil in the first transaction. AASTOCKS Financial News Website: www.aastocks.com |
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