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Oil from U.S. reserves sent overseas as gasoline prices stay high

Commodities Jul 06, 2022 07:31PM ET
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2/2 © Reuters. FILE PHOTO: The Bryan Mound Strategic Petroleum Reserve, an oil storage facility, is seen in this aerial photograph over Freeport, Texas, U.S., April 27, 2020. REUTERS/Adrees Latif 2/2
 
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By Arathy Somasekhar

HOUSTON (Reuters) -More than 5 million barrels of oil that were part of a historic U.S. emergency reserves release to lower domestic fuel prices were exported to Europe and Asia last month, according to data and sources, even as U.S. gasoline and diesel prices hit record highs.

The export of crude and fuel is blunting the impact of the moves by U.S. President Joe Biden to lower record pump prices. Biden on Saturday renewed a call for gasoline suppliers to cut their prices, drawing criticism from Amazon (NASDAQ:AMZN) founder Jeff Bezos.

About 1 million barrels per day is being released from the Strategic Petroleum Reserve (SPR) through October. The flow is draining the SPR, which last month fell to the lowest since 1986. U.S. crude futures are above $100 per barrel and gasoline and diesel prices above $5 a gallon in one-fifth of the nation. U.S. officials have said oil prices could be higher if the SPR had not been tapped.

"The SPR remains a critical energy security tool to address global crude oil supply disruptions," a Department of Energy spokesperson said, adding that the emergency releases helped ensure stable supply of crude oil.

The fourth-largest U.S. oil refiner, Phillips 66 (NYSE:PSX), shipped about 470,000 barrels of sour crude from the Big Hill SPR storage site in Texas to Trieste, Italy, according to U.S. Customs data. Trieste is home to a pipeline that sends oil to refineries in central Europe.

Atlantic Trading & Marketing (ATMI), an arm of French oil major TotalEnergies, exported 2 cargoes of 560,000 barrels each, the data showed.

Phillips 66 declined to comment on trading activity. ATMI did not respond to a request for comment.

Cargoes of SPR crude were also headed to the Netherlands and to a Reliance refinery in India, an industry source said. A third cargo headed to China, another source said.

At least one cargo of crude from the West Hackberry SPR site in Louisiana was set to be exported in July, a shipping source added.

"Crude and fuel prices would likely be higher if (the SPR releases) hadn't happened, but at the same time, it isn't really having the effect that was assumed," said Matt Smith, lead oil analyst at Kpler.

The latest exports follow three vessels that carried SPR crude to Europe in April helping replace Russian crude supplies.

U.S. crude inventories are the lowest since 2004 as refineries run near peak levels. Refineries in the U.S. Gulf coast were at 97.9% utilization, the most in three and a half years.

Oil from U.S. reserves sent overseas as gasoline prices stay high
 

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Comments (10)
Christopher Hand
Christopher Hand Jul 07, 2022 12:10AM ET
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what the stupid govt fails to realize is that ⛽️ prices are so high because we have a lack or refining capacity and thats why the crude is getting shipped. in addition if these refineries keep running at 97+% alot of these older refineries are going to break down.
Alex Chan
Alex Chan Jul 07, 2022 12:10AM ET
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lack of refining capacity aka refiner's excuse to jack up gas prices regardless of oil supply to stick it to Biden lol 🤣
Steve Bojo
Steve Bojo Jul 06, 2022 10:34PM ET
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LGB
Ferdinando Riboni
Ferdinando Riboni Jul 06, 2022 8:39PM ET
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Biden cares more about Ukrainians then Americans
Don Getty
Don Getty Jul 05, 2022 8:28PM ET
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lol, if there is a big draw tomorrow/thur - price is going to fly
Clay Douglass
Clay Douglass Jul 05, 2022 8:06PM ET
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biden is a lying bum.
Sidney Glover
Sidney Glover Jul 05, 2022 8:06PM ET
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and Trump was a Saint? really ? get a life
Ferdinando Riboni
Ferdinando Riboni Jul 05, 2022 8:06PM ET
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Biden is poops mouth
jason xx
jason xx Jul 05, 2022 8:00PM ET
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Traitor trump putins hand puppet would be dealing with global inflation too you c lo w ns
Digger Phelps
Digger Phelps Jul 05, 2022 8:00PM ET
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Your clueless.
jason xx
jason xx Jul 05, 2022 7:56PM ET
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If oil is under 100 barrel then yes it has having an effect
Manoj Mali
Manoj Mali Jul 05, 2022 7:55PM ET
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ongc gas stock any news
Dan Woods
Dan Woods Jul 05, 2022 3:44PM ET
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Thanks Democrats that voted to destroy the USA. Try to learn from this, please. Repeating poor choices will bring poor results again. Please, DON'T. Wake up with the rest us. You can't like what is happening!
jason xx
jason xx Jul 05, 2022 3:44PM ET
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chump trump literally tried to overthrow democracy yet you cry over global inflation?
nick cage
nick cage Jul 05, 2022 3:44PM ET
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the majority of developed countries have lower inflation than the US. also Biden didn't charge for most of the oil sent to the EU. You are just a Marxist fanatic.
Plyler McManus
Plyler McManus Jul 05, 2022 3:44PM ET
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jason xx Georgia
Midnight Trader
Midnight Trader Jul 05, 2022 3:44PM ET
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So a dictator would be better?
Co Gonz
Co Gonz Jul 05, 2022 3:44PM ET
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jason xx overthrow democracy by having people enter capital with no weapons.. yea that makes sense bro
Jack Peterson
Jack Peterson Jul 05, 2022 8:30AM ET
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Amazing…….
jason xx
jason xx Jul 05, 2022 8:30AM ET
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Don't fall for everything you read
Ferdinando Riboni
Ferdinando Riboni Jul 05, 2022 8:30AM ET
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BLM smells like Biden rear ...
Todd Holaday
JustWilliam Jul 05, 2022 8:30AM ET
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jason xx Reading a lot of replies by you. Are thise included in the everything we read?
 
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