US to Replenish Strategic Oil Reserve by 40 Million Barrels After Iran Conflict

US Energy Secretary Chris Wright stated in an interview with Fox Business that companies which borrowed oil from the Strategic Petroleum Reserve (SPR) in recent months will return the volumes as crude oil plus premiums. This process will increase the SPR stock by approximately 40 million barrels following the conclusion of the conflict with Iran.

Wright emphasized, "I am not worried because we are not selling any barrels of oil; rather, we are temporarily supplying quantities to the market when needed and then exchanging those barrels."

He further explained, "For every barrel we release, we will recover 1.25 barrels next year. We will add 40 million barrels to the Strategic Petroleum Reserve after this conflict ends, at no cost to taxpayers, under agreements already established."

The US Department of Energy has lent about 133 million barrels from the SPR, which is stored in underground caverns in Texas and Louisiana, to companies that will repay the quantities in crude oil with premiums reaching up to 24%.

The department indicates that this system will help stabilize markets without imposing any burdens on American taxpayers.

Fuel prices have surged sharply since the outbreak of the war with Iran, but Wright stated he is not concerned about the SPR's inventory levels, even though they remain low.