US Offers 40 Million Barrels From Strategic Oil Reserve As Energy Markets Face Supply Pressures

The United States has offered energy companies access to up to 40 million barrels of crude oil from its Strategic Petroleum Reserve (SPR), marking the final phase of an international agreement to release emergency stockpiles after the outbreak of the war with Iran.

According to Reuters, the US had committed in March to provide 172 million barrels from its strategic reserves as part of a wider initiative involving around 30 countries under the International Energy Agency (IEA).

The global arrangement aimed to release nearly 400 million barrels from emergency reserves to ease pressure on oil supplies.

US crude reserves decline after multiple releases

The US initially made the final 40-million-barrel tranche available in June. However, energy companies eventually opted to borrow only around 500,000 barrels, Reuters reported.

Energy Secretary Chris Wright said the US and Japan had completed their commitments under the programme. He also raised concerns over delays in Europe, where several countries have released only a limited portion of the crude and petroleum products they had pledged.

The White House has encouraged the European Union to use emergency diesel reserves to help reduce fuel prices. While the EU has not revealed the total volume released so far, the IEA has said European contributions are expected to mainly include refined petroleum products rather than crude oil.

The latest offer comes as the US Strategic Petroleum Reserve has declined below 284 million barrels, its lowest level since 1982. Both the Trump administration and the Biden administration have drawn from the reserve in response to energy market disruptions, including the Iran conflict and the Russia-Ukraine war.

Loan programme aims to support fuel markets

The latest crude release comes as the Trump administration faces pressure to control fuel prices ahead of November’s midterm elections. Under the programme, energy companies will borrow crude from the government and return it later along with premiums of up to 24%.

The Department of Energy has said the arrangement will support market stability without creating costs for taxpayers. However, the repayment process is expected to continue for several years, with borrowed crude scheduled to be returned by late 2028.

Companies seeking crude from the latest SPR tranche must submit proposals by October 6, according to the department.