U.S. loans 8.5 MMbbl from SPR in second release amid Iran war

(Reuters) — The U.S. Department of Energy (DOE) has loaned 8.48 MMbbl of crude oil from the Strategic Petroleum Reserve (SPR) to four companies, marking the second tranche of emergency releases aimed at stabilizing oil markets during the ongoing conflict with Iran.

The latest allotment was awarded to Gunvor USA, Phillips 66, Trafigura Trading and Macquarie Commodities Trading. The DOE had previously offered up to 10 million bbl in this second round.

The SPR loans are part of a broader effort by the U.S. and other members of the International Energy Agency (IEA) to offset supply disruptions. In total, the U.S. plans to release up to 172 MMbbl from the SPR through 2027, contributing to a coordinated global release of approximately 400 MMbbl.

The move follows a first tranche last month in which companies lifted about 45.2 MMbbl, or roughly half of the volume offered. The DOE has since announced a third offering of 30 MMbbl of sweet crude from the West Hackberry storage site in Louisiana, with bids due in the coming days.

Crude is being issued as loans rather than outright sales, requiring recipients to return the volumes with additional barrels as a premium. The DOE said the structure is designed to support market stability without direct cost to taxpayers.

The SPR currently holds approximately 413 MMbbl, its lowest level since the mid-1980s. However, U.S. production capacity has increased significantly over that period, with the country now the world’s largest oil producer.

The coordinated releases come as global oil markets remain under pressure from supply disruptions tied to the conflict, which has constrained flows through key export routes and contributed to elevated prices.