U.S. Plans to Lend Up to 40 Million Barrels of Crude Oil from Strategic Petroleum Reserve

en.Wedoany.com Reported - The U.S. Department of Energy said on Wednesday that it is seeking to lend up to 40 million barrels of crude oil from the Strategic Petroleum Reserve to energy companies to help lower fuel prices. This lending plan is part of a previous agreement to release 172 million barrels of oil from the reserve. To date, the U.S. has lent approximately 133 million barrels of oil under the agreement. In March, the U.S. reached a consensus with about 30 member countries of the International Energy Agency to release approximately 400 million barrels of oil from global reserves to help stabilize the oil market. Previously, the Strategic Petroleum Reserve was stored in underground salt caverns along the coasts of Texas and Louisiana. The current reserve inventory stands at 349.2 million barrels, the lowest level since August 2023. Borrowing companies are required to return an equivalent amount of crude oil and pay an additional premium of up to 24% (in the form of extra oil). The Department of Energy stated that the system will help stabilize the market without incurring costs for U.S. taxpayers. Energy Secretary Chris Wright said that approximately 35 million to 40 million barrels of additional oil will be returned in the form of premiums this year and next year.

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