Washington: The US Department of Energy announced that it had loaned 8.48 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) to four companies. This move is part of a second round of releases intended to mitigate fuel prices amid ongoing conflict in the Middle East.
According to Qatar News Agency, the recipients of this crude oil loan are Gunvor USA, Phillips 66, Trafigura Trading, and Macquarie Commodities Trading. This initiative follows a recent offer to sell 30 million barrels of light, sweet crude from the West Hackberry site in Louisiana, aimed at stabilizing the energy market.
The Department of Energy noted that in the first round of releases last month, companies took approximately 45.2 million barrels, about 52% of the offered volume, indicating a demand lower than anticipated. These SPR releases operate as exchange agreements, requiring companies to return the crude oil with additional barrels as a premium, ensuring the supply process does not incur costs to taxpayers.
In a broader strategy, Washington had proposed on April 1 to loan up to 10 million barrels in this second round, as part of a comprehensive plan to release up to 172 million barrels through 2027. This action aligns with efforts from other members of the International Energy Agency, who have collectively agreed to release around 400 million barrels to stabilize global markets affected by supply disruptions linked to the conflict.
Currently, the SPR holds approximately 413.3 million barrels, marking its lowest level since the mid-1980s and equating to just over four days of global oil demand. This significant reduction underscores the strategic importance of the reserves amid ongoing geopolitical tensions.