US Energy Secretary Signals Possible Expansion of Oil Reserve Loans Amid Price Surge
Chris Wright says steep market backwardation could prompt the Energy Department to offer the remaining 38.5 million barrels available under an existing crude loan program.
US Energy Secretary Chris Wright has indicated that the Department of Energy may lend additional crude oil from the Strategic Petroleum Reserve (SPR) if current market conditions persist, according to a report by Argus Media cited by Anadolu Agency.
Wright said that steep backwardation in oil markets — a situation in which near-term prices are significantly higher than futures prices — could prompt the department to offer the remaining 38.5 million barrels available under an existing loan program.
The statement comes amid a period of rising oil prices, which analysts have linked to supply concerns and heightened demand in various markets. Backwardation is often seen by traders as a signal of tight near-term supply.
Details on the specific terms, timing, or conditions under which the additional barrels might be released were not immediately available. Anadolu Agency's report, based on Argus Media, did not specify further comments from Wright regarding the potential scope or timeline of any expanded lending.
The Strategic Petroleum Reserve, managed by the US Department of Energy, is the country's emergency crude oil stockpile, established to mitigate the impact of severe supply disruptions. Loan programs from the reserve have previously been used as a tool to help stabilize markets during periods of price volatility.
Further details on the potential release, including confirmation from the Department of Energy, were not available at the time of this report.
Sources
- US may lend more oil from strategic reserve amid price surge: Energy secretary — Anadolu Agency (Turkey)
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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