US to loan up to 40 million barrels of oil from SPR, last batch from global deal
USO•The US is offering energy companies loans of up to 40 million barrels from the Strategic Petroleum Reserve, completing its share of a 400-million-barrel global release deal. A similar offer in June drew bids to borrow about 500,000 barrels.
1. Final US batch
The US government is offering companies loans of up to 40 million barrels of oil from the Strategic Petroleum Reserve, the final US batch under a March agreement with about 30 International Energy Agency countries to release 400 million barrels from reserves. The US had agreed to loan 172 million barrels under the deal. A June offer of the final 40 million barrels drew bids to borrow only about 500,000 barrels.
2. Reserve and repayment terms
The reserve holds less than 284 million barrels, its lowest level since 1982. Routine drawdowns are restricted below 252.4 million barrels, though emergency releases remain allowed. Companies will repay the oil in crude, with premiums of up to 24%, and the return is not scheduled to be completed until late 2028; proposals are due October 6. Energy Secretary Chris Wright said the US and Japan had met their commitments, while several European countries had released only a fraction of what they pledged. The White House reportedly urged the European Union to draw down emergency diesel inventories to lower prices.
