US Releases 400,000 Barrels From Oil Reserve to Support Louisiana Refinery

October 24, 2026 | By Semahegn Nigatu

The United States has authorised the release of up to 400,000 barrels of crude oil from its Strategic Petroleum Reserve to address a supply disruption affecting the Phillips 66 Lake Charles refinery in Louisiana, the US Department of Energy said.

The emergency exchange is intended to offset temporary interruptions in crude oil deliveries and help maintain production of transport fuels for Louisiana and surrounding markets.

The department said the oil would be delivered immediately from the West Hackberry site, one of the facilities holding the country’s strategic reserves.

Under the terms of the exchange, Phillips 66 must return the borrowed crude oil along with additional barrels as a premium. The department said the arrangement would replenish and strengthen the reserve at no additional cost to taxpayers.

“This emergency exchange helps alleviate supply disruption and requires Phillips 66 to return more barrels to the SPR than are currently being withdrawn,” said Kyle Haustveit, the department’s under secretary of energy.

The department said the measure was intended to support refinery operations and maintain stable fuel supplies while the disruption was addressed. It did not specify the cause or expected duration of the interruption affecting crude oil deliveries to the refinery.

The Strategic Petroleum Reserve is the US government’s emergency stockpile of crude oil, maintained to help respond to significant supply disruptions. The department said it would continue working with industry partners to support fuel supply stability and could use other available authorities if necessary to protect the country’s energy security.

The exchange is a temporary supply measure rather than an outright sale of government oil, with the additional barrels required for repayment intended to increase the reserve beyond the volume withdrawn.

Source: FSX Business News