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The U.S. Department of Energy launches an emergency drawdown mechanism for the Strategic Petroleum Reserve to stabilize global oil supplies
The U.S. Department of Energy issued a Request for Proposal (RFP) on March 13 local time, regarding the allocation of crude oil from the Strategic Petroleum Reserve (SPR).
This is part of the 172 million barrel crude oil transfer plan announced earlier this week, with the first tender involving 86 million barrels of crude oil.
Under the exchange terms, companies will return the borrowed crude oil to the U.S. Department of Energy and provide an additional amount of crude oil as a premium, thereby enhancing the strategic petroleum reserve and stabilizing the market.
The first batch of crude oil is expected to begin entering the market by the end of next week. (Sina Finance)