The administration is worried about meeting oil demand in July and August. | REUTERS W.H. to release 30M barrels of oil

The Obama administration will release 30 million barrels of oil from the Strategic Petroleum Reserve in an effort to offset oil supply disruptions in the Middle East, the Energy Department announced Thursday morning.

Other International Energy Agency countries will release an additional 30 million barrels.


“We are taking this action in response to the ongoing loss of crude oil due to supply disruptions in Libya and other countries and their impact on the global economic recovery,” Energy Secretary Steven Chu said in a statement. “As we move forward, we will continue to monitor the situation and stand ready to take additional steps if necessary.”



Unrest in Libya means about 1.5 million barrels of oil per day are not entering the market, and the administration is worried about meeting demand in July and August. Earlier this month, OPEC countries failed to reach an accord to raise oil production targets.

As of Wednesday, Americans paid an average of $3.61 for a gallon of regular gasoline, according to AAA, down from a high of nearly $4 in mid-May.

Oil prices fell in early trading Thursday morning. U.S. prices were down over $4 per barrel to $90.80.

The U.S. petroleum reserves were last tapped in 2005 to address supply issues following Hurricane Katrina.

This article first appeared on POLITICO Pro at 9:37 a.m. on June 23, 2011.