On October 16, 2026, the United States Department of Energy issued a request for proposals to exchange up to 17 million barrels of crude oil from the Strategic Petroleum Reserve. The release forms part of a broader IEA initiative to accelerate emergency oil reserves and stabilize energy markets strained by the conflict with Iran and attacks around the Strait of Hormuz. Despite a U.S.-Russia diesel deal and IEA stock releases, Brent crude remains near $106 per barrel.
US Strategic Petroleum Reserve oil exchange
- ▪In June 2026, companies agreed to borrow only about 500,000 barrels from the Strategic Petroleum Reserve because terms required returning extra crude equivalent to premiums of up to 24 percent.
- ▪On October 16, 2026, the United States Department of Energy issued a request for proposals to exchange up to 17 million crude oil barrels from the Strategic Petroleum Reserve under a March 2026 agreement to loan 172 million barrels.
International Energy Agency emergency reserves
- ▪International Energy Agency member states have released about 330 million of the 400 million barrels of oil pledged in March 2026, with the United States accounting for over 40 percent of total releases.
- ▪The International Energy Agency announced an accelerated release of 20 million barrels of emergency diesel supplies to address international fuel shortages.
- ▪International Energy Agency member nations agreed on October 15, 2026, to accelerate the emergency release of approximately 100 million barrels of remaining pledged oil reserves.
Crude oil and diesel prices
- ▪Average United States diesel prices rose to over $6 per gallon amid global supply restrictions and refinery disruptions.
- ▪December Brent crude futures traded around $104 to $106 per barrel on October 16, 2026, while West Texas Intermediate crude futures dropped to $95.75 per barrel.
Attacks on shipping in the Strait of Hormuz
- ▪A container ship and a dry bulk carrier were sunk near the Strait of Hormuz in the past 24 hours after being hit by projectiles in separate incidents.
- ▪Iran has launched attacks on commercial shipping in the Strait of Hormuz since February 2026 to restrict transit and gain leverage over Washington during negotiations.
US deal on Russian diesel exports
- ▪United States President Donald Trump reached an agreement with Russian President Vladimir Putin to allow Russian diesel exports after the United States removed sanctions placed on Russia.
- ▪European and Ukrainian leaders criticized the United States deal allowing Russian diesel exports, warning that easing restrictions could financially benefit Moscow.
- ▪Russia agreed to release an initial 300,000 tonnes of diesel exports to global markets after Ukraine intensified attacks on Russian oil refineries.
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