The U.S. Department of Energy has issued a new request for proposal to exchange up to 40 million barrels of crude from the Strategic Petroleum Reserve, extending a release tied to President Donald Trump's 172 million barrel commitment. The reserve has fallen to its lowest level since 1982, even as the G7 and IEA coordinate a separate 100 million barrel release to calm diesel markets.
DOE opens new 40 million barrel exchange
The U.S. Department of Energy has issued a Request for Proposal for an exchange of up to 40 million barrels of crude oil from the Strategic Petroleum Reserve. The move continues the 172 million barrel release previously announced by President Trump, coordinated with the International Energy Agency member nations' overall 400 million barrel commitment.
Crude for the latest exchange will come from the SPR's Big Hill and Bryan Mound sites, with bids due by October 6 and deliveries scheduled for November and December 2026. This builds on five previous solicitations that collectively awarded more than 133 million barrels across four completed exchanges, which the DOE says achieved a 25% premium in returned barrels. U.S. Secretary of Energy Chris Wright said the exchanges mean "the United States continues to lead the coordinated efforts to stabilize oil markets", adding that they will save taxpayers more than $3 billion.
Reserve at its lowest since 1982
The SPR held 283.8 million barrels as of September 25, according to the EIA's latest weekly report. That is a 0.3% drop week on week and a 30.2% drop year on year — the lowest level since October 1982.
The current total represents 39.69% of the SPR's authorized 714 million barrel capacity. Executives surveyed in the Dallas Fed's third-quarter Energy Survey were split on how low the reserve could practically go, but most put the minimum below the 285 million barrel level the SPR stood at on September 18, suggesting the reserve still has room before hitting a practical floor.
G7 and IEA add a separate diesel release
Beyond the U.S. exchanges, G7 leaders agreed on October 2 to a coordinated release of 100 million barrels through the IEA over four months, with a frontloaded diesel release within the first 20 days to ease pressure on refined-product markets. IEA Executive Director Fatih Birol noted that around 325 million of the original 400 million pledged barrels — over 80% — have already been released. Wright said that while the United States and Japan are delivering on their commitments, several European member countries have released only a fraction of their pledged volumes.
Source: Rigzone
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