Oil from US reserves is shipped overseas as a result of gasoline costs are nonetheless excessive

HOUSTON, july 5 (Reuters) – More than 5 million barrels of oil in a historic emergency release of US reserves to lower domestic fuel prices were exported to Europe and Asia last month, according to HOUSTON, July 5 (Reuters) data and sources, including US gasoline and diesel prices hit record highs.

Crude oil and fuel exports are softening the impact of US President Joe Biden’s moves to lower record pump prices. On Saturday, Biden renewed his call for gasoline suppliers to lower prices, drawing criticism from Amazon founder Jeff Bezos. read more

About 1 million barrels per day will be released from the Strategic Petroleum Reserve (SPR) through the end of October. Outflows are draining the SPR, which last month fell to its lowest level since 1986. Crude oil for delivery US prices above $100/barrel and gasoline and diesel prices above $5/gallon in one-fifth of the country. US officials say oil prices could be higher if the SPR is left unexploited.

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

America’s fourth largest refiner, Phillips 66 (PSX.N), shipped about 470,000 barrels of sour crude from its Big Hill SPR storage facility in Texas to Trieste, Italy, according to U.S. Customs data. Trieste is home to pipelines to oil refineries in Central Europe.

Atlantic Trading & Marketing (ATMI), a subsidiary of French oil and gas group TotalEnergies (TTEF.PA)The data shows that two shipments worth 560,000 barrels were exported.

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

Shipments of SPR crude are also delivered to the Netherlands and to Reliance (RELI.NS) an oil refinery in India, an industry source said. A third source of goods went to China, another source said.

At least one shipment of crude from the West Hackberry SPR site in Louisiana will be exported in July, a shipping source said.

“Crude oil and fuel prices are likely to be higher if (the SPR release) doesn’t happen, but at the same time, it doesn’t really have the same impact,” said Matt Smith, lead oil analyst at Kpler. has been assumed”.

The latest exports follow three SPR crude carriers arriving in Europe in April, helping to displace Russian crude supplies. read more

U.S. crude inventories are at their lowest since 2004 as refineries operate near their peak. U.S. Gulf Coast refineries reached 97.9% utilization, the highest in three and a half years.

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Reporting by Arathy Somasekhar in Houston; Edited by Chizu Nomiyama and Sam Holmes

Our standards: Thomson Reuters Trust Principles.

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