The U.S. Department of Energy has requested bids to loan up to 40 million barrels from the Strategic Petroleum Reserve, completing the U.S. share of a coordinated IEA drawdown tied to disruptions from the war on Iran. Bids are due by 11:00 a.m. Central on Oct. 6, with deliveries planned for Nov–Dec 2026. SPR stocks have fallen below 284 million barrels — the lowest level since 1982 — and law would limit routine releases if inventories drop under 252.4 million barrels. Rising fuel costs have increased political pressure ahead of the midterms.
U.S. Taps Final 40 Million Barrels From Strategic Petroleum Reserve to Complete IEA Drawdown
U.S. is offering the last 40 million barrels from its emergency oil reserve as fuel prices surge hero image
On Tuesday, the U.S. Department of Energy issued a request for proposals to loan up to 40 million barrels of crude oil from the Strategic Petroleum Reserve (SPR), marking the completion of the American portion of a coordinated international release prompted by supply disruptions tied to the war on Iran.
Details Of The Solicitation
The solicitation represents the final tranche of the 172-million-barrel release President Donald Trump authorized in March. That U.S. contribution is part of a broader International Energy Agency (IEA) agreement under which roughly 30 member countries pledged about 400 million barrels to global markets. Bids for this exchange are due by 11:00 a.m. Central Time on October 6, and deliveries are scheduled for November and December 2026.
Exchange, Not A Sale
The Energy Department structured the release as an exchange rather than an outright sale. Companies that borrow crude from the SPR must return the same volume plus a premium. The department noted that prior exchanges have yielded returns of up to 25% more barrels than were lent, at no cost to taxpayers. The crude for this solicitation will originate from the SPR sites at Big Hill and Bryan Mound.
“Several European member countries have released only a fraction of the crude oil and petroleum products they pledged. We urge every member country to fulfill its commitments,” said Energy Secretary Chris Wright.
Inventory Levels And Legal Limits
SPR inventories have fallen below 284 million barrels — the lowest level since 1982, Reuters reported. Under federal law, routine releases would be curtailed if stocks drop below 252.4 million barrels, although the president would retain authority to tap the reserve in a declared national emergency.
Market And Political Impact
Fuel prices have climbed sharply since U.S. and Israeli strikes on Iran began on February 28. Gasoline averages about $4.45 per gallon — nearly 50% higher than before the conflict — while diesel has surged roughly 70% to record highs near $6.50 per gallon, Reuters said. The sustained run-up in fuel costs has intensified political pressure on President Trump and his party ahead of November’s midterm elections.
Earlier this year the SPR dipped below 300 million barrels for the first time in more than four decades, with one week’s withdrawals totaling 6.1 million barrels. Before the conflict began, the reserve held roughly 415 million barrels. When the Energy Department first offered this same 40 million-barrel tranche in June, companies accepted only about 500,000 barrels, prompting the department to relaunch the tender.
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