The U.S. Department of Energy announced on Friday that it has loaned 8.48 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) to four companies, marking the second release under the administration of Donald Trump to ease rising fuel prices during the U.S.-Israeli conflict with Iran.
The companies receiving these SPR loans include Gunvor USA, Phillips 66 Company, Trafigura Trading, and Macquarie Commodities Trading. Earlier, on April 1, the U.S. had offered to lend up to 10 million barrels in this second round.
US Plans to Lend 172 Million Barrels Through 2027
In total, the U.S. plans to lend 172 million barrels from the SPR through this year and into 2027. This move is part of a broader coordinated effort with 32 countries under the International Energy Agency to release a combined 400 million barrels of oil.
The release of crude from emergency reserves is meant to control oil prices that have surged during the war, which the IEA said has led to the biggest oil disruption in history.
In the first batch from the U.S. SPR, energy companies last month only took 45.2 million barrels, or about 52% of what the DOE offered.
Third Batch of 30 Million Barrels Announced
On Thursday, the DOE offered a third batch of 30 million barrels of sweet, or low-sulfur, crude from the SPR’s West Hackberry site in Louisiana. The SPR is held underground in four locations off the coasts of that state and Texas. Bids for that batch are due on Monday.
Oil from the SPR is being released in loans that companies will return with extra barrels as a premium, a system the DOE says will help stabilize markets “at no cost to American taxpayers.”
The SPR currently holds about 413.3 million barrels, or more than what the entire world uses in four days. That is the lowest level since the mid-1980s, but since then the United States has become the world’s top oil producer.
(With Inputs from Reuters)
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