US Taps Last 40 Million Barrels of SPR as Diesel Hits $6.44 a Gallon and White House Eyes European Reserves

The U.S. Department of Energy is offering the final 40 million barrels of crude from the Strategic Petroleum Reserve, completing the 172 million barrel coordinated emergency release pledged alongside the International Energy Agency in March. The release comes as retail diesel prices average $6.44 a gallon, nearly seven months into the Iran war, with the SPR standing at 286.6 million barrels as of late August after 3.1 million barrels were drawn during the week ending August 28.

Demand for the crude may be limited. A June request for proposals from the same release program attracted buyers for only about half a million barrels, and market observers note that global refining capacity, not crude supply, is the more pressing constraint on diesel availability.

With domestic fuel costs elevated, the Trump administration is separately exploring whether European governments would release diesel from their own strategic reserves, potentially as an alternative to imposing a U.S. diesel export ban. Europe is reported to hold more than 350 million barrels across government and commercial stockpiles, but Germany has already signaled it is unlikely to release reserves simply to reduce American fuel prices. Meanwhile, UK diesel prices are forecast to breach £2 a litre within days, driven by the threat of U.S. export restrictions and ongoing supply disruptions from the Middle East and Russia. The United States Oil Fund slid on Tuesday amid the broader market pressure from elevated fuel costs.