DOE Offers Final 40M Bbl from SPR to Ease War Disruption


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The U.S. Department of Energy (DOE) on Wednesday 
(6/10) offered a further 40 million bbl from the Strategic Petroleum Reserve as 
part of its final deal with the International Energy Agency to provide a total 
of 172 million bbl as relief to supply disruptions caused by the Iran war.

   The emergency drawdown represents a strategic effort to combat severe global 
supply disruptions triggered by the breakout of the conflict on February 28, 
2026. The closure of the Strait of Hormuz immediately removed millions of bpd 
from international circulation, threatening catastrophic energy shortages 
across the globe.

   Prior to today's announcement, the DOE rapidly advanced four separate 
solicitations that successfully awarded more than 133 million bbl across three 
completed exchange agreements. These emergency measures have drawn down the 
domestic stockpile toward 357 million bbl as refiners struggle to source 
replacement barrels amid ongoing geopolitical hostilities.

   Under the final part of the arrangement, the DOE offers 40 million bbls of 
sour and sweet crude grades pulled directly from the reserve's Big Hill and 
Bryan Mound storage sites to market participants who will exchange that oil 
later with similar barrels.

   Participating energy companies are required to submit competitive bids by 
June 15 and must eventually return the borrowed volume along with a 26% premium 
in barrels.




(c) Copyright 2026 DTN, LLC. All rights reserved.