The United States announced Tuesday it would loan 40 million barrels of petroleum from its Strategic Petroleum Reserve to major energy firms—a move that follows the March pledge of 172 million barrels and the IEA‑approved release of 400 million barrels among 30 members. The aim is to temper price spikes triggered by the Ukraine war and an intensifying standoff with Iran.
In June, the Trump administration signaled the final tranche of the IEA release would be 40 million barrels, but by August only 500,000 barrels had actually been borrowed. Energy companies cited logistical constraints and a limited appetite for the reserve’s credit lines.
Meanwhile, Ukraine has intensified strikes on Russian energy infrastructure to blunt Moscow’s war‑financing. President Volodymyr Zelenskyy tweeted that the Kremlin must halt its escalation after a recent strike on a pipeline in Krasnodar. Russian officials say the attacks have disrupted the flow of crude to global markets.
India’s refiners are bracing for a further plunge in Russian supplies in the coming months. A source in the sale of Russian crude said China’s demand has pushed up prices, forcing Indian buyers to seek alternative suppliers. Kpler forecasts September arrivals in India to fall to 1.75 million barrels per day from 2.1 million in August.
The U.S. Treasury will finalize the loan paperwork next week, with the first deliveries expected by September 15. Energy analysts say the release could stabilize markets, but warn that sustained supply disruptions may still keep prices above the 2023 average.