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The Department of Energy will make available 50 million barrels of oil to lower prices. Of the 50 million barrels, 32 million will be returned to the Strategic Petroleum Reserve over the next three years on the assumption that prices go down in the future, and 18 million will come from a sale approved by Congress in the 2018 budget.
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[The Strategic Petroleum Reserve holds] 620 million barrels of crude oil, the world's largest emergency supply. While the stockpile is typically reserved for emergencies, the administration has broad authority to conduct oil exchanges — releases that are repaid to the stockpile.
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The release of the oil reserves should quickly translate into lower prices at the pump, and officials will be watching to make sure energy companies are passing along lower oil prices to consumers, a senior administration official said. The decision was made jointly with other major energy-consuming countries to curb increasing energy prices after oil-rich nations rejected repeated calls to increase production.