U.S. Offers Final 40 Million Barrels From Strategic Petroleum Reserve as Diesel Tops $6

The U.S. Department of Energy will offer 40 million barrels of crude from the Strategic Petroleum Reserve through an exchange, the final tranche of a 172 million-barrel coordinated release organized by the International Energy Agency, with bids due Oct. 6. The SPR held 286.6 million barrels at the end of August after 3.1 million barrels exited in the week ending Aug. 28, leaving it more than 445 million barrels below maximum capacity. Once the latest release is completed, the reserve is expected to fall to its lowest level since 1982. Federal law restricts non-emergency drawdowns below 252.4 million barrels. U.S. gasoline remains above $4 per gallon, while diesel has climbed above $6 amid tight middle-distillate supplies tied to the Iran war. Distillate inventories were 14% below the five-year average in early September; gasoline stocks were 6% below seasonal norms. Energy Secretary Chris Wright pressed European IEA members to meet their own emergency-stock commitments. Receiving companies must return larger volumes later; DOE expects roughly 200 million barrels back.