US offers loans of 30 million SPR barrels amid Hormuz blockade

Friday 10 April 2026 - 08:50

By: Dakir Madiha

US offers loans of 30 million SPR barrels amid Hormuz blockade

The Trump administration announced Thursday a solicitation for loans of up to 30 million barrels of light crude from the Strategic Petroleum Reserve. This marks the third such exchange since the US tapped emergency stocks last month to counter supply disruptions from Iran's Strait of Hormuz blockade.

Bids for crude from the West Hackberry SPR site in Louisiana must arrive by 11 a.m. Central Time on April 13, the Energy Department said. Borrowers must repay borrowed volumes plus extra barrels as premium. Officials say this structure will expand stocks at no taxpayer cost.

The move expands US support for the largest coordinated emergency release in International Energy Agency history. On March 11, 32 IEA members agreed to release 400 million barrels total. The US committed 172 million, or 43%.

The DOE issued its first request March 13 for up to 86 million barrels from three SPR sites. Contracts awarded March 21 covered 45.2 million barrels to eight firms, including Shell, Marathon Petroleum and BP. The government expects about 55 million barrels back from November 2026 to September 2028. A second 10-million-barrel solicitation from Texas's Bryan Mound site followed March 31.

Drawdowns raise questions about long-term reserve sustainability. DOE data show 1.5 million barrels left the SPR last week alone. Full 172-million-barrel release would drop stocks to about 243 million barrels, the lowest since 1982.

Bernstein analysts told CNBC the release offers limited price relief. US daily release capacity of 1.4 million barrels covers just 15% of lost Hormuz supply. Energy Secretary Chris Wright said the administration aims to rebuild to about 200 million barrels, 20% above released volume, via exchange premiums.

Success hinges on factors beyond Washington control. Full release may not occur if conflict resolution reopens the strait.