The U.S. Department of Energy finalized agreements to loan 40 million barrels of crude oil from the Strategic Petroleum Reserve to companies like Gunvor, Trafigura, and Phillips 66. The release concludes the U.S. commitment to a 400-million-barrel global International Energy Agency agreement prompted by the U.S.–Israel war with Iran. While reserve levels dropped to their lowest since 1982 at 282 million barrels, the Trump administration structured the loans to yield 44 million premium barrels in interest upon return starting in early 2027.
Awards for the 40 million barrel SPR loan
- ▪The U.S. government agreed to loan approximately 40 million barrels of crude oil from the Strategic Petroleum Reserve in final market distributions following an initial offering in September 2026.
- ▪The U.S. Department of Energy awarded contracts for nearly 16.8 million barrels of crude oil from the Strategic Petroleum Reserve to Gunvor, Trafigura Trading, Phillips 66, and Vitol Inc.
- ▪The U.S. Department of Energy awarded 23.8 million barrels of crude oil from the Strategic Petroleum Reserve to companies including ExxonMobil, Atlantic Trading & Marketing, and Macquarie Commodities Trading
Repayment terms for Strategic Petroleum Reserve loans
- ▪Under Secretary Kyle Haustveit stated that securing the return of more oil than released strengthens American energy security and prepares the Strategic Petroleum Reserve for future needs.
- ▪Under the Trump administration's Strategic Petroleum Reserve loan agreements, borrowing energy companies must return 44 million barrels of crude oil in premium interest in addition to the original borrowed volumes starting early in 2027.
Impact of U.S.–Iran war on energy supplies
- ▪The outbreak of the U.S.–Iran war in late February 2026 caused energy supply disruptions and higher fuel prices, driving further drawdowns from the U.S. Strategic Petroleum Reserve.
- ▪The U.S. crude oil loan of 40 million barrels from the Strategic Petroleum Reserve serves as the final portion of the U.S. share of a global agreement aimed at controlling fuel prices following the start of the U.S.–Israel war on Iran.
March 2026 agreement to loan 172 million barrels
- ▪In March 2026, the United States agreed to loan 172 million barrels of crude oil from the Strategic Petroleum Reserve as part of a 30-country International Energy Agency agreement to release 400 million barrels worldwide.
- ▪President Donald Trump stated in March 2026 that releasing 172 million barrels from the Strategic Petroleum Reserve was intended to ease rising gasoline prices.
Strategic Petroleum Reserve inventory levels
- ▪The Strategic Petroleum Reserve held approximately 415 million barrels of crude oil in March 2026, compared to its total authorized capacity of 727 million barrels.
- ▪Crude oil inventory in the U.S. Strategic Petroleum Reserve reached its lowest level since 1982, standing at over 282 million barrels as of October 16, 2026.
- ▪U.S. Strategic Petroleum Reserve stocks declined from approximately 638 million barrels to 394 million barrels under the Biden administration following Russia's 2022 invasion of Ukraine.
Emergency release following Hurricane Isaias
- ▪In early October 2026, the U.S. Department of Energy authorized an emergency release of up to 4 million barrels of crude oil to BP America and ExxonMobil to address Gulf region disruptions caused by Hurricane Isaias.
- ▪Hurricane Isaias made landfall
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