US — Strategic Petroleum Reserve Loans Reach 40 Million Barrels Under Global Oil Agreement
The United States has finalized its contribution to an international initiative aimed at easing fuel price pressures by making approximately 40 million barrels of crude oil from its Strategic Petroleum Reserve available to companies through loan agreements.
The US Department of Energy announced that contracts covering nearly 16.8 million barrels were awarded on October 28. The latest recipients included Gunvor, Trafigura Trading, Phillips 66 and Vitol.
The government had initially offered approximately 17 million barrels from the reserve on October 16.
A separate allocation of 23.8 million barrels was previously awarded on October 13 to companies including Exxon Mobil, Atlantic Trading & Marketing and Macquarie Commodities Trading.
These latest contracts complete the US contribution to a wider agreement involving approximately 30 countries through the International Energy Agency.
As part of the international initiative, Washington committed to lending 172 million barrels from its emergency reserve. The broader effort aims to release 400 million barrels from government stockpiles worldwide.
The initiative was introduced to help contain fuel prices following the outbreak of the war involving the United States and Israel against Iran.
However, drawing more heavily on emergency oil supplies has prompted concerns about the government’s capacity to handle future disruptions in energy supplies.
The Strategic Petroleum Reserve has declined to its lowest level since 1982 following earlier withdrawals, including releases made after Russia’s invasion of Ukraine in 2022.
Rather than selling the crude outright, the current administration is providing the oil to companies through lending arrangements. Borrowers will pay interest by returning additional barrels beyond the quantities they receive.
The Energy Department said the agreements are expected to bring back an additional 44 million barrels on top of the oil borrowed.
Repayments are scheduled to begin early next year.
Under Secretary Kyle Haustveit said the arrangement would reinforce US energy security by ensuring that more oil is eventually returned to the reserve than was initially withdrawn.
The agreement underscores the difficulty governments face in addressing immediate energy market pressures while preserving sufficient emergency supplies for future crises.
Although releasing crude oil can increase available supplies during periods of disruption, maintaining adequate reserve levels remains essential to responding to future energy emergencies.
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