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business Wednesday 2 March 2022
Nations agree to release 60M barrels of oil amid Russian war

By DAVID McHUGH imports of crude oil and pe-
AP Business Writer troleum products that year
FRANKFURT, Germany (AP) came from Russia, based
— The International Energy on data from the statistical
Agency's 31 member coun- arm of the U.S. Energy De-
tries agreed Tuesday to re- partment.
lease 60 million barrels of oil In November, Biden an-
from their strategic reserves nounced a release of 50
— half of that from the million barrels of oil in coor-
United States — "to send a dination with other energy-
strong message to oil mar- importing countries, but the
kets" that supplies won't fall measure had only a fleet-
short after the Russian inva- ing impact on oil prices,
sion of Ukraine. which have continued to
The board of the Paris- rise.
based IEA made the de- Stewart Glickman, an oil
cision at an extraordinary analyst for CFRA Research,
meeting of energy ministers said the latest release from
chaired by U.S. Energy Sec- the SPR would only be par-
retary Jennifer Granholm. tially helpful, because most
She said in a statement of the reserves are light oil,
that U.S. President Joe while the U.S. largely im-
Biden approved a commit- ports a heavier grade of oil
ment of 30 million barrels A pumping unit sucks oil from the ground near Greensburg, Kan. on March 6, 2012. from Russia.
and that the U.S. is ready to Associated Press "Refiners plan around a
"take additional measures" certain blend of crudes, so
if needed. ers are reluctant to restrict global demand for oil was tory that the IEA has done you can't always just swap
The group's "decision re- Russian oil exports at a 100.2 million barrels a day a coordinated drawdown out one for another easily,"
flects our common commit- time when global energy in the fourth quarter of since the reserves were es- he said.
ment to address significant markets are tight and high 2021. Demand is expected tablished in the wake of the Granholm stressed the
market and supply disrup- prices are fueling inflation to grow to an average of Arab oil embargo in 1974. need to invest in renewable
tions related to President in developed economies. 100.6 million barrels a day From the U.S. perspective, energy as a way to reduce
Putin's war on Ukraine," But the invasion has still this year, as restrictions to the price of crude oil deter- dependence on Russian oil
Granholm said. shaken markets worldwide. limit the spread of CO- mines a big portion of what and natural gas.
Russia plays an outsized On Tuesday, oil prices VID-19 are eased, the IEA drivers pay to fill up their To that end, Democratic
role in global energy mar- soared, with U.S. bench- said. cars with gasoline. The na- Sen. Joe Manchin of West
kets as the third-largest mark crude surpassing $106 Besides the United States, tional average for a gallon Virginia called on Biden
oil producer. Its exports of per barrel — the highest other members of the or- of gas is $3.61, which is 26 and the oil industry to take
5 million barrels of crude price since 2014. ganization include Ger- cents more than a month immediate action "up to
per day amount to about "The situation in energy many, France, the United ago and 90 cents more and including banning
12% of the global oil trade. markets is very serious and Kingdom, Japan and Can- than a year ago, accord- crude oil imports from Rus-
Some 60% goes to Europe demands our full attention," ada. IEA members hold ing to motor club federa- sia."
and another 20% to China. IEA executive director Fatih emergency stockpiles of tion AAA. "If there was ever a time to
So far, U.S. and European Birol said. "Global energy 1.5 billion barrels of oil. The In 2021, the U.S. imported be energy independent, it
sanctions have not barred security is under threat, put- release amounts to 4% of roughly 245 million barrels is now,'' said Manchin, who
oil or gas exports and have ting the world economy at stockpiles, or roughly 2 mil- of crude oil and petroleum supports fossil fuels such as
included exceptions for risk during a fragile stage of lion barrels per day for 30 products from Russia — a coal and natural gas that
transactions to pay for oil the recovery." days. one-year increase of 24% are his crucial to his energy-
and gas. Western lead- Last month, the IEA said It's only the fourth time in his- over 2020. Nearly 8% of U.S. producing state.q

Cash-strapped Egypt hikes Suez Canal transit fees for ships

CAIRO (AP) — Cash- tankers, and other liquid and closed off the canal in
strapped Egypt increased bulk tankers increased by March 2021.
transit fees Tuesday for ships 10%. Vessels carrying vehi- The six-day blockage dis-
passing through the Suez cles, natural gas and gen- rupted global shipment.
Canal, one of the world's eral cargo, as well as multi- Some ships were forced
most crucial waterways, purpose vessels, will see an to take the long alternate
with hikes of up to 10%, of- increase of 7%, while a 5% route around the Cape
ficials said. increase will be imposed of Good Hope at Africa's
The Suez Canal Authority on oil and crude tankers southern tip, requiring addi-
said on its website the in- and dry bulk vessels, it said. tional fuel and other costs.
creases were "in line with The hikes could later be re- Hundreds of other ships
the significant growth in vised or called off, accord- waited in place for the An army zodiac secures the entrance of a new section of the
global trade" and cited the ing to changes in global blockage to end. Suez Canal in Ismailia, Egypt, Aug. 6, 2015.
canal's "development and shipping, it added. About 10% of global trade, Associated Press
enhancement of the transit Canal authorities have including 7% of the world's
service." been working to widen and oil, flows through the Suez — which first opened in said 20,649 vessels passed
According to a statement, deepen the waterway's Canal, which connects the 1869 — is a source of both through the canal last year,
transit fees for liquefied southern part, where a Mediterranean and Red national pride and for- a 10% increase compared
petroleum gas, chemical hulking vessel ran aground seas. For Egypt, the canal eign currency. Authorities to 18,830 vessels in 2020. q