US taps strategic oil reserve after Gulf of Mexico hurricane disruptions

The US Department of Energy has authorized the emergency release of up to 4 million barrels of oil from the country's Strategic Petroleum Reserve to address supply disruptions caused by a hurricane in the Gulf of Mexico.

According to Report, citing the department's press service, ExxonMobil and BP America will each be eligible to receive up to 2 million barrels.

Under the agreements, the companies will be required to return the volumes they receive in 2027 together with additional barrels of oil, helping replenish the strategic reserve at no additional cost.

US Energy Secretary Chris Wright said the move would help support refinery operations and limit disruptions to fuel supplies.

He said the emergency agreements would not only help minimize supply disruptions but would also require Exxon and BP to return more barrels to the reserve than they receive, saving taxpayers millions of dollars.

The agreement with ExxonMobil also provides for accelerating the delivery of oil previously allocated to the company from the Strategic Petroleum Reserve to meet current needs.

Hurricane Isaias made landfall on Florida's Gulf Coast on the evening of October 9. At least two people were killed as a result of the storm.