• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 2 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents * Too late now
  • 19 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 6 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 2 hours Will Uncle Sam Step Up and Cut Production
  • 5 hours 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 7 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 7 mins With Global Warming Greenland is Prime Real Estate
  • 5 mins Sad . . . Only thing that moves oil price up is an attack on Tankers or Oil Facilities (Staged or real?)
  • 1 day Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 8 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 11 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 1 day Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 2 days NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 1 day US Petroleum Demand Strongest Since 2007
Alt Text

Trump Freezes All Caracas Assets In Surprise Move

President Donald Trump signed an…

Alt Text

Shale Pioneer Hamm Calls For Production Slowdown

U.S. shale producers need to…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

U.S. Will Not Release Oil From SPR To Offset Iran Sanctions

The United States will not sell crude oil from the Strategic Petroleum Reserve to help ensure the global market is well supplied when sanctions against Iran enter into effect, Reuters reports, quoting Energy Secretary Rick Perry.

“If you look at the Strategic Petroleum Reserve and you were to introduce it into the market, it has a fairly minor and short-term impact. The numbers I’ve seen do anyway,” Perry told media, chiming in with arguments some skeptics have voiced about the effect of a SPR sale would have on the market.

Perry’s statement, however, is confusing in light of a notice for the sale of 11 million barrels of crude from the SPR dated August 20th. The notice stated buyers could bid for the crude until August 28, with contracts to be awarded within another seven days. “Deliveries will be take place in October and November 2018,” the notice said. That SPR release is part of a larger planned drawdown, ans one of several this year alone, including FY 2018 mandated and FY 2018 modernization sales, in which billions of the SPR were sold.

Talk of Washington’s readiness to offer additional supply on a market that is bracing up for distress has acted as a cap on prices, especially in the last few days, after the U.S. special envoy for Iran said at the UN General Assembly the U.S. will make sure there is enough supply. Related: $80 Oil: Increased Investment Or Demand Destruction?

If this supply is not coming from the SPR—however moderate effect this crude would have had on prices—then buyers would have to rely on other major producers. Perry also said as much: the market would have to rely on large producers for maintaining ample supply of crude.

“I’m comfortable that the world supply can absorb the sanctions that are coming,” the Energy Secretary said, noting that Iraq alone could add 300,000 bpd of oil to global supply if it allows Kurdish oil to reach international markets. Another 300,000 bpd, he said, could come from a field in the neutral zone between Saudi Arabia and Kuwait when the two agree on how to share the profits.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Dick Ferry on September 27 2018 said:
    Never say never.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play