Officials said this is the final piece of the nation's 172 million barrel contribution to the oil release coordinated by the International Energy Agency, dating back to the outset of the Iran war. Rather than a straight sale, the release took the form of an exchange - effectively a loan that companies must repay with interest - and, according to the department, it will ultimately bring about 200 million barrels back into the reserve through the next year, which is roughly 20% more than was released.
Washington pushed allies to keep pace with the US and Japan in the IEA-led effort. "Several European member countries have released only a fraction of the crude oil and petroleum products they pledged," Energy Secretary Chris Wright said. "We urge every member country to fulfill its commitments."
Prices for crude, gasoline, diesel, and jet fuel have risen since Feb. 28, when military operations against Iran began. Gasoline is holding above $4 per gallon, while diesel has moved beyond a record $6 per gallon, intensifying pressure on President Donald Trump ahead of November's midterm elections that could determine control of the House. Wright has indicated that a further drawdown is improbable.
Once this release is wrapped up, the SPR is projected to hit its lowest level since 1982. By statute, once inventories dip under 252.4 million barrels, non-emergency drawdowns are barred, and a 1981 US Government Accountability Office report advised against going under 250 million barrels except in a "very severe emergency." According to ClearView Energy Partners, a consulting firm based in Washington, the reserve's operational minimum is around 70 million barrels.
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More barrels can take some heat off prices, but there is a hard ceiling on how far the SPR can be tapped. If European volumes show up as promised, that could add a bit more supply relief. If they do not, higher fuel costs stick around longer and ripple into airfare, shipping, and everyday deliveries.
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