United States to release 40 million barrels of oil via SPR swaps

The U.S. Department of Energy’s Strategic Petroleum Reserve (SPR) Office of Management announced plans to release 40 million barrels of crude oil to the market through a swap arrangement. Under this program, participating companies must submit proposals shortly. The federal government expects to deliver the reserve oil in batches during November and December.

Participating companies are required to return the crude oil starting as early as April 2027, with the final repayment period extending through the end of 2029. The swap mechanism is designed to assist refineries facing emergencies such as hurricanes, pipeline blockages, or waterway closures.

Recent data from the U.S. Energy Information Administration shows that as of the week ending September 18, the SPR held 284.6 million barrels, a decrease of over 130 million barrels since late March. Between March and June of this year, three separate swap contracts involving a total of 107 million barrels were conducted.