This transaction is part of a larger 172 million barrel drawdown initiated in March to stabilize energy prices ahead of the midterm elections. The Energy Department is now concluding this plan with a final 40 million barrel tranche, with bids due Oct. 6. Unlike direct releases, these actions are structured as loans where borrowers must return 1.25 barrels for every one taken, a mechanism Energy Secretary Chris Wright says will eventually leave the reserve fuller than it was at the start.
Wednesday, October 21, 2026
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US Energy Department Approves 4M Barrel SPR Swap at 1982 Low
Commodities10 days ago
U.S. emergency crude stockpiles have declined for 28 consecutive weeks to reach their lowest point in over four decades. Inventories in the Strategic Petroleum Reserve fell to 283 million barrels last week, a level not seen since 1982, which is about 40% of its 714 million barrel capacity. In response to this depletion and market volatility caused by disruptions in the Strait of Hormuz, the US Energy Department has authorized a new emergency swap of up to 4 million barrels of crude oil.
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