US puts up to 40 million barrels from strategic reserve up for sale

Oil prices are slipping after the US announced an offer of as much as 40 million barrels from the Strategic Petroleum Reserve.

The SPR holds 284 million barrels as of September 2026, its lowest point since 1982. Since the US entered the conflict in Iran, 172 million barrels have been released, much of it through a sale-and-buyback arrangement that was due to start replenishing late this year. Now it appears the US will sell again instead.

Given the political pressures ahead of the midterms and rising gasoline costs, the move comes as little surprise.

The operational floor for the SPR is believed to be between 250 million and 300 million barrels, while federal law sets a minimum of 252 million. Still, the notion of legal constraints seems more theoretical these days, so the outcome remains uncertain. Some argue the US no longer requires strategic reserves at all and could sell off the entire stock, since it is a major producer, but the use of the SPR during the current conflict suggests the opposite need.