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US Energy Secretary Chris Wright confirmed that crude oil began flowing from the Strategic Petroleum Reserve (SPR) last Friday to mitigate the escalating global energy crisis. This strategic move is part of the US administration's efforts to bolster global supply and stabilize markets amid the conflict with Iran and the closure of the Strait of Hormuz. Speaking at CERAWeek, Wright noted that while oil prices have surged significantly, they have not yet reached levels causing "meaningful demand destruction." The physical release of crude aims to counter price spikes that have seen oil trading between $100 and $150 per barrel following attacks on regional infrastructure. Market analysts expect the additional supply to exert downward pressure on WTI and Brent crude prices in the immediate term. The intervention highlights the government's commitment to using emergency reserves to shield the economy from severe energy supply disruptions.
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