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U.S. taps more oil from emergency reserve
Trump administration grapples with surging fuel prices
The Strategic Petroleum Reserve storage at the Bryan Mound site in Freeport, Texas. (Brandon Bell/Getty Images via Bloomberg News)
Key Takeaways:
- The U.S. ordered a final release of up to 40 million barrels from the Strategic Petroleum Reserve and urged European nations to meet pledged reserve contributions.
- Fuel prices have surged since military operations against Iran began on Feb. 28, raising political pressure as gasoline remains above $4 a gallon and diesel exceeds $6.
- The Energy Department said bids for the latest SPR exchange release are due by 11 a.m. central time on Oct. 6.
The U.S. ordered another release of oil from emergency reserves — and urged European nations to do likewise — as the Trump administration grapples with fuel prices that are surging less than two months before the midterm elections.
The U.S. will offer up to 40 million barrels from the Strategic Petroleum Reserve, according to a statement from the Department of Energy, in what will be the last of the nation’s 172-million-barrel contribution to the coordinated release of oil from reserves around the world since the start of the Iran war.
Energy Secretary Chris Wright took a swipe at some countries in Europe in the statement, saying they’ve lagged behind the U.S. and Japan when it comes to contributing to the effort, organized by the International Energy Agency.
“Several European member countries have released only a fraction of the crude oil and petroleum products they pledged,” Wright said. “We urge every member country to fulfill its commitments.”
Crude, gasoline, diesel and jet fuel prices have surged since military operations against Iran began on Feb. 28, intensifying pressure on President Donald Trump to address rising fuel costs ahead of November’s midterm elections, which could determine control of the House. Gasoline remains well above $4 a gallon and diesel fuel has surged past a record $6 a gallon.
Still, Energy Secretary Chris Wright has signaled another drawdown is unlikely.
— U.S. Department of Energy (@ENERGY) September 29, 2026
The SPR is projected to fall to its lowest level since 1982 once the latest release is completed. Federal law bars non-emergency drawdowns once inventories fall below 252.4 million barrels, while a 1981 report from the U.S. Government Accountability Office advised against releases below 250 million barrels except in a “very severe emergency.”
The reserve’s operational minimum — the point at which it becomes difficult for the infrastructure to function — is around 70 million barrels, according to ClearView Energy Partners, a Washington-based consulting firm.
The release was structured as an exchange, essentially a loan that companies repay with interest. The Energy Department has said that will ultimately return about 200 million barrels to the reserve over the next year, roughly 20% more than was released.
Bids for the latest SPR releases are due by 11 a.m. Central time on Oct. 6, according to a statement from the Department of Energy.
