The US Department of Energy has announced the release of millions of barrels of crude oil from the nation’s emergency reserves, as Washington steps up efforts to contain rising fuel prices linked to the ongoing Middle East conflict.
In its latest move, the department confirmed it had loaned 8.48 million barrels of crude from the Strategic Petroleum Reserve to four energy trading and refining companies. The recipients include Gunvor USA, Phillips 66, Trafigura Trading and Macquarie Commodities Trading.
The release forms part of a second round of emergency measures aimed at boosting supply in global markets. It follows an earlier offer to sell 30 million barrels of light, sweet crude from the West Hackberry storage site in Louisiana.
Officials said the programme is designed to provide short-term relief while maintaining long-term reserves. The oil is being issued under exchange agreements, meaning companies must return the borrowed crude at a later date along with additional barrels as a premium. The department said this approach helps increase supply without placing a direct financial burden on taxpayers.
The government had initially offered to loan up to 10 million barrels in this second phase, part of a broader plan to release as much as 172 million barrels from the reserve through 2027.
Data from the first round of releases last month showed more modest demand than expected. Companies took in around 45.2 million barrels, representing just over half of the total volume offered. Analysts say this may reflect uncertainty in global markets as traders assess the durability of ceasefire efforts and ongoing supply disruptions.
The United States is also coordinating with the International Energy Agency, whose member countries have agreed to release a combined 400 million barrels in an effort to stabilise prices and maintain supply flows.
Despite these efforts, the level of oil held in the Strategic Petroleum Reserve has fallen significantly. Current stockpiles stand at about 413.3 million barrels, the lowest level since the mid-1980s. That volume represents just over four days of global oil demand, underlining the scale of current consumption and the pressure on emergency reserves.
The drawdowns come as global energy markets remain volatile, with supply routes disrupted and production capacity affected in key regions. US officials say the coordinated releases are intended to ease immediate price pressures while providing time for broader diplomatic efforts to stabilise the situation.
