The United States has opened a new exchange programme for up to 17 million barrels of crude from its Strategic Petroleum Reserve as Washington seeks to ease fuel-price pressure caused by supply disruptions linked to the war with Iran.
The US Department of Energy issued a request for proposals on Friday, inviting companies to borrow crude from the emergency stockpile and return it at a later date. Under the exchange arrangement, companies generally return the borrowed oil along with additional barrels as a premium.
The latest offer is part of a broader international effort announced in March to stabilise energy markets after the conflict disrupted oil supplies and pushed prices higher. The United States had committed to making 172 million barrels available from its strategic reserves through a coordinated International Energy Agency initiative involving about 30 countries.
The wider plan was intended to release 400 million barrels from emergency oil stocks held by participating countries. However, demand for an earlier US offer was limited. In June, companies agreed to borrow only about 500,000 barrels after being required to return additional crude equivalent to premiums of as much as 24 per cent.
The response raised questions about whether the terms offered by the government were attractive enough for energy companies, particularly when crude prices and future supply conditions remained uncertain. The latest request will test whether revised market conditions encourage stronger participation in the exchange programme.
The Strategic Petroleum Reserve is the United States’ emergency crude-oil stockpile. It is intended to cushion major supply disruptions and support energy-market stability during crises. Changes in global crude prices can feed into transport and logistics costs, fuel prices and the operating expenses of businesses and public services in cities.
The US initiative follows other measures aimed at increasing fuel availability. Earlier this month, US President Donald Trump reached an agreement with Russian President Vladimir Putin to allow Russian diesel exports, with an initial release of 300,000 tonnes expected. Ukraine and European leaders criticised the move, warning that easing restrictions could provide financial benefits to Moscow.
Separately, G7 leaders announced on October 2 that they would coordinate the release of 100 million barrels of emergency oil stocks through the IEA over four months. The plan also included an accelerated release of diesel supplies to address shortages in international markets.
Energy markets remained under pressure on Friday, with Brent crude trading at around $106 a barrel. Continuing attacks on Gulf shipping and disruptions around the Strait of Hormuz were keeping supply concerns elevated.
Companies must now respond to the US Department of Energy’s request for proposals under the terms set out for the latest 17-million-barrel exchange. The level of participation will indicate whether the new offer can contribute meaningfully to the wider effort to increase emergency oil supplies.
