President Donald Trump said on Wednesday the United States would provide "a little bit" of oil as part of the International Energy Agency's plan to release a record 400 million barrels held across member countries' strategic reserves. The move is intended to help blunt sharp price increases that occurred in the context of the U.S.-Israeli war with Iran.
In an interview with local television in Ohio, the president did not specify the volume the United States would contribute. "Right now, we'll reduce it a little bit, and that brings the prices down," he said, without providing further detail on the amount.
The U.S. Strategic Petroleum Reserve, or SPR, currently contains 415.4 million barrels. Most of this crude is high sulfur, or sour crude, which U.S. refineries are designed to process. The oil is stored underground in hollowed-out salt caverns located on the coasts of Texas and Louisiana. The SPR's total storage capacity is approximately 714 million barrels.
Past SPR uses in wartime and conflict-related disruptions
U.S. presidents have previously accessed the SPR in response to international conflicts and supply shocks. These actions have ranged from coordinated releases with international partners to standby threats of tapping the reserve that ultimately went unused.
Russia invades Ukraine - In March 2022, the month after Russia's invasion of Ukraine, President Joe Biden ordered the release of 180 million barrels to be distributed over six months. That action was the largest sale ever from the SPR. The Biden administration, and later the Trump administration, subsequently purchased some oil to begin replenishing the reserve. However, only a small amount has been returned to the SPR because additional congressional funding is required to complete replenishment.
Attack on Saudi Arabia - In 2019, Yemen's Iran-aligned Houthis attacked Saudi Arabia, leading to a shutdown of more than half the crude output in the world's largest exporter. At that time, President Trump, in his first term, said his administration stood ready to tap the SPR if necessary. The reserve was not tapped because oil production recovered quickly from the affected facilities at Abqaiq and Khurais.
Libya civil war - In June 2011, President Barack Obama ordered a release of 30 million barrels from the SPR to help offset market disruptions stemming from civil war in Libya. That U.S. release was coordinated with the Paris-based IEA, which prompted an additional 30-million-barrel release by other member countries.
Operation Desert Storm - Following Iraq's 1990 invasion of Kuwait, President George H.W. Bush authorized sales from the reserve in two phases during 1990-1991. In October 1990, the United States conducted a 3.9-million-barrel test sale. In January 1991, after U.S. and allied air operations began in Iraq as part of Operation Desert Storm, the administration ordered a sale of 34 million barrels, of which 17.3 million barrels were actually sold. Overall, about 21 million barrels were sold in those phases.
Implications and operational context
The current SPR inventory and the administration's indication of a modest contribution help explain the government's tactical approach to immediate price pressure. The SPR's composition - predominantly sour crude - aligns with refinery configurations across the United States. The reserve's storage in salt caverns on the Gulf Coast and its maximum capacity of roughly 714 million barrels frame the scope for possible additional releases or future replenishment needs.
Decisions about using the SPR have historically combined domestic inventory considerations with international coordination through mechanisms such as the IEA. The scale and timing of releases have varied according to the nature of the supply disruption and whether other producers quickly restored output, as occurred after the 2019 attacks on Saudi facilities.