Jake Fox
The United States is tapping its strategic oil reserve as fuel inventories shrink and the Iran war disrupts supply: the Department of Energy will offer 40 million barrels through an exchange. On September 28, 2026, oil tracking fund USO rose 1.13% to $150.01, a fund price rather than a direct crude quote.
| Price | 150.01 USD |
|---|---|
| Day change | +1.68 (+1.13%) |
| 52-week range | 113.86 – 163.35 |
| RSI (14) | 55.78 |
| Volume | 9,282,076 |
Why the United States is tapping its strategic oil reserve
The offer is the final portion of a 172 million barrel release pledged by the United States under an International Energy Agency emergency effort. Companies that receive crude must return oil later, with extra barrels as interest. The Department of Energy says the exchange program is expected to put roughly 200 million barrels back into the reserve over time. Bids are due Oct. 6.
The arrangement brings crude into the market now, but it does not erase the longer term supply question. Energy Secretary Chris Wright has also urged European countries to fulfill their emergency stock commitments, saying several International Energy Agency members released only a fraction of the amounts they pledged.
Reserve levels fall as commercial stocks draw down
The Strategic Petroleum Reserve held 286.6 million barrels at the end of August, after 3.1 million barrels were withdrawn in the week ending Aug. 28. That was more than 445 million barrels below maximum capacity. The latest release is expected to leave the reserve at its lowest level since 1982.
Commercial crude supplies were also declining. By Sept. 1, stocks had fallen by more than 48 million barrels over the previous 20 weeks. Federal law restricts nonemergency withdrawals once the reserve drops below 252.4 million barrels. A 1981 Government Accountability Office report advised against releases below 250 million barrels except in a very severe emergency.
Iran war disruptions keep fuel markets tight
Nearly seven months into the Iran war, U.S. gasoline remained above $4 per gallon and diesel above $6. At the start of September, distillate inventories were 14% below their five year average, while gasoline stocks were 6% below normal seasonal levels. The supplied data identifies war related disruption and tight fuel supplies, but gives no production figures or dollar measure to assess their separate effects.
USO, the United States Oil Fund, stood at $150.01 on Sept. 28, up 1.13% for the day. Its 52 week range was $113.86 to $163.35, and its RSI was 55.78. Those figures track the fund, not a quoted benchmark price for crude oil.
Can the exchange replenish the reserve fast enough?
The exchange shifts oil into near term supply while requiring recipients to return a larger volume later. Whether that return can rebuild public stocks while commercial inventories and fuel supplies remain under pressure is unresolved. The supplied figures do not include a production outlook or dollar data that would clarify the broader balance.
Frequently Asked Questions
Is strategic oil reserve?
The Strategic Petroleum Reserve is a U.S. government stockpile of crude oil intended for emergencies that threaten energy supplies.
How is the strategic oil reserve stored?
It is stored as crude oil in underground salt caverns at sites along the Gulf Coast.
How much oil is in the strategic reserve?
The reserve held 286.6 million barrels at the end of August. The planned 40 million barrel exchange offer is expected to reduce the total further before returned oil replenishes it.
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