Huge SPR drawdown
The U.S. tapped the Strategic Petroleum Reserve for 172 million barrels — the second‑largest draw in history — leaving the SPR at roughly 415 million barrels, about 60% of its 714M barrel capacity (youtube.com). The move was framed as an emergency supply release to calm markets amid Iran‑related disruptions and has immediate implications for oil price volatility and logistics planning (youtube.com).
President Trump requested the move and 32 member countries of the International Energy Agency agreed to a coordinated emergency release, a decision the Energy Department says was unanimous. (energy.gov) The Department of Energy has framed the U.S. action as an emergency “exchange” in which companies borrow SPR barrels and return more oil later rather than a permanent sale. (worldoil.com) Bidders on the exchange can include a premium when they return barrels — the department’s terms and market reporting show initial premium bids in the high‑teens to low‑twenties percent range. (straitstimes.com) DOE set a roughly 120‑day delivery window for the program, and the SPR’s maximum discharge capability is about 4.4 million barrels per day with a roughly 13‑day lead time from decision to market entry. (energy.gov) Contracts were awarded for an initial tranche of 45.2 million barrels, with shipments drawn from Bayou Choctaw (10.0m), Bryan Mound (15.7m) and West Hackberry (19.5m), and recipients named in the awards include BP Products North America, Gunvor USA, Marathon Petroleum and Shell Trading. (energy.gov) Markets still tightened after the announcement: Brent crude settled back above $100 per barrel and U.S. WTI futures traded in the mid‑$90s as tanker attacks and Strait of Hormuz disruptions kept physical flows constrained. (bloomberg.com)
