U.S. To Loan 45.2 Million Barrels from Strategic Petroleum Reserve
The U.S. Department of Energy has awarded contracts to loan 45.2 million barrels of crude oil from the Strategic Petroleum Reserve, effective through Friday, the department announced.
The companies awarded contracts from the Strategic Petroleum Reserve include BP Products North America, Chevron U.S.A., Marathon Petroleum, and Shell Trading, according to Reuters.
The loan forms part of a broader agreement among member countries of the International Energy Agency to release a total of 400 million barrels of crude oil from reserves in an effort to stabilize prices amid geopolitical tensions. The move comes as the U.S.-Israeli conflict with Iran continues to impact global energy markets.
The United States is releasing the oil in the form of loans, which companies will repay with additional barrels as a premium. The Department of Energy states this system is designed to stabilize markets “without any cost to American taxpayers.”
The U.S. Ultimately aims to exchange a total of 172 million barrels from the Strategic Petroleum Reserve, anticipating that oil companies will return approximately 200 million barrels, including the premium. This approach reflects a strategy to bolster supply without directly depleting the nation’s reserves, a key consideration given ongoing global uncertainties. The announcement from the Department of Energy, also reported by Al Arabiya and Aawsat, signals a continued commitment to energy security.
