US DOE Issues RFP for Up to 40 Million-Barrel Strategic Petroleum Reserve Oil Exchange

The US Department of Energy on Wednesday issued a Request for Proposal seeking competitive bids for an exchange of up to 40 million barrels of crude oil from the Strategic Petroleum Reserve, the DOE said in a statement.

The solicitation advances the US' planned release of 172 million barrels from the SPR and forms part of a coordinated 400-million-barrel action by member countries of the International Energy Agency, DOE said.

The crude oil offered under the exchange will be supplied from the SPR's Big Hill and Bryan Mound storage sites along the US Gulf Coast.

The latest offering follows four previous DOE solicitations that collectively awarded more than 133 million barrels through three completed exchange programs.

According to the department, those exchanges resulted in a 26% premium on returned barrels, increasing the reserve's inventory at no additional cost to taxpayers.

Under DOE's exchange authority, companies receiving crude oil from the reserve are required to return the borrowed volumes at a later date, along with additional premium barrels.

The department said the arrangement is designed to address near-term supply disruptions while expanding the SPR's long-term inventory.

Bids for the solicitation must be submitted by 11.00 a.m. Central Time on June 15.

US SPR inventories dropped to 349.2 mmbbls for the week ended June 5, down from 357.1 mmbbls a week ago, marking a weekly decline of 7.9 mmbbls, US Energy Information Administration data showed in its weekly report on Wednesday.

The reserve is hovering just above the 2023 low of 346.7 million barrels, Fortune reported on Wednesday. A drop below that point reportedly places the emergency stockpile at its lowest level since August 1983, when the reserve was first being built by the Reagan administration.

US Natural Gas Update: Futures Edge Down on Cool Weather Forecasts

US natural gas futures softened further in after-hours trading on Tuesday as abundant supply and mild weather forecasts outweighed demand signals.The front-month Henry Hub contract and the continuous benchmark both eased 0.29% to $3.138 per million British thermal units."Price action remains largely rangebound, with weekly changes still limited to only a few cents across most of the curve," Pinebrook Energy Advisors said in a note.Weather expectations remain a key driver. Cooler-than-normal temperatures forecast for June 14-18 across the Midwest and eastern US are expected to curb air-conditioning demand and put pressure on prices, according to Barchart, citing Vaisala data.It also said Lower-48 natural gas demand rose to 73.2 billion cubic feet per day on Tuesday, up 0.8 Bcf/d from the previous session and 5.8% higher over the year.The US Energy Information Administration's outlook shows a split summer demand profile, with June notably weak before demand strengthens later in the season.For June, the EIA forecasts 240 cooling degree days, down 15% over the year and 9% below the 10-year average, signaling reduced air-conditioning demand at the start of summer.Conditions then tighten into the third quarter, with CDDs rising 8% from a year earlier as hotter weather boosts cooling demand. That late-summer strength is expected to offset the soft start in June.Overall, the EIA still projects 2026 cooling demand averaging 4% above 2025 and 4% above the 10-year average, indicating firmer underlying summer consumption despite the early weakness.Daily US dry gas production was reported at 110.1 Bcf/d on Tuesday, down 2 Bcf/d from the prior day but still up 2.2% over the year, BNEF data showed.The EIA expects US gas output to rise 3.3% in 2026 to 111.0 Bcf/d, with further growth in 2027 driven by Permian associated gas and Haynesville output.Despite steady demand growth, elevated production is expected to keep inventories above the five-year average and cap upside in Henry Hub prices. The EIA projects prices averaging $3.34/MMBtu in the second half of this year and $3.46/MMBtu in 2027, down sharply from prior forecasts.LNG feedgas flows to US export terminals also increased, reaching 17.9 Bcf/d, up 0.3 Bcf/d on the day and 8.7% higher over the week.

EPA Extends Waiver For Summertime National Sales of E15 Blended Gasoline

The Environmental Protection Agency and the US Department of Energy on Tuesday extended the summertime waiver for the sales of E15 blended gasoline through June 29.The waiver regarding the requirements in 40 CFR 1090.215 allows for the production and distribution of a single national gasoline pool with 9% to 15% ethanol content at a common Reid Vapor Pressure standard of 10 pounds per square inch, according to the EPA announcement.In the same waiver letter, EPA is reissuing a waiver for federal enforcement of state-level "boutique" fuel requirements for gasoline under 40 CFR 1090.215. Both waivers share a 20-day effective window from June 10, 2026, to June 29, 2026.The EPA noted that states that have adopted fuel standards under consumer protection and/or air quality statutes may need to waive those provisions in State code to enable implementation of the Federal waiver in the States.In May, the EPA extended a waiver allowing the nationwide summer sales of E15, effective until June 9.

US DOE Issues RFP for Up to 40 Million-Barrel Strategic Petroleum Reserve Oil Exchange

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