The administration of President Trump said Tuesday it will offer another 40 million barrels of crude oil for the market from the nation’s strategic petroleum reserve, which held about 283.8 million barrels as of Sept. 25. That’s the SPR’s lowest level in more than 40 years. If companies take all 40 million barrels before any replacement crude is returned, the inventory would fall to about 244 million barrels, which would put the stockpile below the statutory threshold of 252.4 million barrels.
The offer completes the U.S. promise to 30 IEA countries of 172 million barrels to help offset losses of crude during the U.S.-Israeli ongoing war in Iran. Bids are due to the U.S. Department of Energy by Oct. 6 for crude from the SPR’s two Texas storage sites, Bryan Mound and Big Hill, to be delivered in November and December.
There is no guarantee that companies will take all 40 million barrels offered. The same offer was made in June, according to Oil & Gas Journal, but only one company agreed to borrow about 500,000 barrels.