The US Department of Energy (DOE) has awarded more than half of the 40mn bl of crude it offered from the Strategic Petroleum Reserve (SPR) in September as part of the 172mn bl emergency drawdown authorised in March, sources said.
ExxonMobil, Macquarie, Centalion (formerly Gunvor), TotalEnergies' trading arm ATMI, Trafigura and Energy Transfer Partners were collectively loaned 20mn-25mn bl SPR crude from the latest tranche. ExxonMobil was the largest recipient with around 15mn bl.
None of this was confirmed, and the DOE did not immediately respond to a request for comment.
The DOE offered on 29 September to loan up to 40mn bl of sour crude from the SPR's Bryan Mound and Big Bill storage sites in Texas, with delivery scheduled for November and December. Bidding formally closed on 6 October.
The relatively limited uptake may reflect soaring costs to move the crude from the US. ExxonMobil could be taking most of its award to its refineries in the US, a source said. Others said the availability of cheaper sour crude alternatives in the Mediterranean market also dampened interest in the SPR release. Exports of Iraqi sour Basrah crude to Europe have been rising in recent weeks.
Traders said none of the SPR crude awarded in the latest tranche has been offered to European refiners.
The DOE has released about 131.6mn bl of crude from the SPR under the authority President Donald Trump provided in March.
