The U.S. Department of Energy authorized an emergency exchange of up to 4 million barrels of crude oil from the Strategic Petroleum Reserve on October 10, aiming to ease hurricane-related supply disruptions along the Gulf Coast and keep refineries operating.
According to the department’s October 10 emergency oil exchange announcement, ExxonMobil and BP America can each receive up to 2 million barrels from the federal reserve.
The approval allows companies to borrow emergency crude rather than purchase it outright. Both companies must return the oil, along with additional barrels, in 2027. DOE said the arrangement would help strengthen the reserve without additional taxpayer costs.
The new authorization differs from the department’s September 29 proposal to exchange up to 40 million barrels, which was part of a broader international effort to stabilize oil supplies. Saturday’s decision specifically addresses hurricane-related disruptions.
ExxonMobil’s allocation will accelerate deliveries of crude previously awarded under the reserve program, while BP America’s authorization covers up to another 2 million barrels.
The decision comes as U.S. emergency crude inventories remain historically low. Investozora previously reported how the Strategic Petroleum Reserve fell near levels last seen in 1982, highlighting the pressure on the country’s emergency oil buffer.
The immediate impact on gasoline prices remains uncertain. DOE has not specified in its announcement the exact delivery timetable or how much of the newly authorized volume has already been withdrawn.
The next development to watch is the actual delivery of crude to participating companies and whether the additional supply helps maintain refinery operations during the disruption.
