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U.S. Awards First SPR Loans of 45.2 Million Barrels to Cool Oil Price Surge

The swap structure requires borrowers to return extra barrels, a design the government says stabilizes prices without taxpayer cost.

Overview

  • The Energy Department allocated supplies to BP Products North America, Gunvor USA, Marathon Petroleum and Shell Trading, with additional awards to Energy Transfer, Mercuria, Trafigura and Vitol.
  • The first round covers just over half of the 86 million barrels outlined for the initial phase, with deliveries scheduled through 2026 and into next year.
  • The action is part of an International Energy Agency effort involving 32 countries that targets a combined 400 million barrels for release.
  • Borrowers must repay 18%–22% more oil than they take, and repayments from this tranche are expected to add nearly 10 million barrels back to the reserve.
  • The SPR holds about 415 million barrels in Texas and Louisiana storage as the late‑February IranIsrael war drove crude to four‑year highs.