Key facts
- Companies will return an additional 40 million barrels of crude oil to the U.S. Strategic Petroleum Reserve.
- The return of these barrels is contingent on the conclusion of the conflict in Iran.
- The additional barrels are considered premiums for oil previously borrowed from the SPR.
- U.S. Energy Secretary Chris Wright stated the department is trading barrels, receiving 1.25 barrels back for each barrel loaned out.
- Wright expressed no concern about current SPR stock levels.
U.S. Energy Secretary Chris Wright announced that companies which borrowed crude oil from the Strategic Petroleum Reserve (SPR) will return an additional 40 million barrels. This repayment is set to occur as a premium after the conclusion of the conflict in Iran. Wright indicated that he is not worried about the current quantity of oil held in the SPR, which are at low levels. He explained that the department is actively engaging in barrel trading, not selling any oil but flowing it to the marketplace when needed. Each barrel flowed out results in receiving 1.25 barrels back the following year. The Department of Energy is loaning approximately 133 million barrels of oil from the SPR, held in underground caverns in Texas and Louisiana, to companies that will repay in crude with premiums of up to 24%. This system is intended to stabilize markets at no cost to U.S. taxpayers. The loans are part of a wider deal struck in March with countries in the International Energy Agency to release up to 400 million barrels from international reserves to help calm global oil markets after the closure of the Strait of Hormuz and attacks on energy facilities. As of the week ending May 29, 2026, the SPR recorded a release of 8 million barrels, bringing the total down to 357.1 million barrels, the lowest level since January 2024. The U.S. is in the process of releasing 172 million barrels from the SPR as part of a coordinated effort with the International Energy Agency (IEA) to release 400 million barrels of crude oil and refined products globally to address oil supply disruptions stemming from conflict in the Middle East. The reserve posted back-to-back record drawdowns in mid-May, with 9.92 million barrels released in the week ending May 15 and 8.6 million the week before, bringing the stockpile to 365.1 million barrels at that point. At 357.1 million barrels, the reserve sits at roughly half of its all-time high of 726.6 million barrels. During Trump's first term, the SPR started around 660 million barrels and ended at about 638 million. The Biden administration released an unprecedented amount of oil from early 2022, causing the SPR to plummet from approximately 638 million to a 40-year low of roughly 347 million barrels by late 2022. A slow refill brought it back to approximately 392 million by the time Biden left office. Trump's second term saw the SPR tick up to about 415 million by early 2026, but the Strait of Hormuz crisis triggered an emergency IEA-coordinated release that has driven it back down to approximately 357 million barrels. The current AAA gas price is $4.22, down from around $4.55.