US loans 40 million barrels of oil from SPR, in last share of global agreement

The US government said on Thursday that oil companies have agreed to borrow about 40 million barrels of crude from the Strategic Petroleum Reserve, the last batch of the US share of a global deal aimed ‌at controlling fuel prices after the US and Israel started the war on Iran. The Energy Department said ‌it awarded contracts on Oct. 28 for nearly 16.8 million barrels. Gunvor, Trafigura Trading, Phillips 66 and Vitol Inc borrowed those barrels,it said in a statement. The US had offered the 17 million barrels from the SPR on October 16.

The department awarded 23.8 million barrels on ⁠Oct. 13 ​to companies including Exxon Mobil, ⁠Atlantic Trading & Marketing and Macquarie Commodities Trading. Washington agreed in March to loan 172 million barrels of oil from the SPR as part of ⁠a wider deal with about 30 countries in the International Energy Agency to release 400 million barrels from reserves around the ​world.

Heavy dependence on the SPR has come at a price, costing some of its ability to calm ⁠markets. President Donald Trump's administration tapped it after the previous administration of former President Joe Biden sold large amounts of SPR oil following Russia's invasion ⁠of ​Ukraine in 2022. The level of the SPR is now the lowest since 1982. Rather than selling the oil, the Trump administration is loaning it and charging interest in the form of barrels of oil. That will ⁠result in 44 million barrels in addition to the borrowed volumes that will begin to be returned to the ⁠SPR early next year, the ⁠administration said.

"By securing the return of more than we released, we are strengthening America’s energy security and ensuring the Strategic Petroleum Reserve remains ready for the future," said Kyle ‌Haustveit, an under ‌secretary at the department.