US authorises emergency exchange of up to 4 million reserve oil barrels

The US Department of Energy authorised an emergency exchange of up to 4 million barrels from the Strategic Petroleum Reserve on October 10 to address hurricane-related supply disruptions. Companies must return the borrowed oil in 2027 with additional barrels.

The department approved exchanges of up to 2 million barrels each for ExxonMobil and BP America. ExxonMobil's arrangement will also accelerate deliveries of reserve oil previously awarded to the company.

Officials said the measure would support refinery operations and limit fuel-supply disruptions after severe weather in the Gulf of Mexico. RIA Novosti linked the action to Hurricane Isaias, which made landfall in Florida.

The arrangement is temporary borrowing rather than a permanent sale: participating companies must return more oil than they receive. The authorisation sets an upper limit and does not establish that all 4 million barrels have already been delivered.

According to figures reported by RIA Novosti, the reserve held 283.8 million barrels at the end of the week ending September 25, its lowest level since October 1982. The department said it would continue working with industry to address hurricane-related disruptions.