29.09.202617:20:08UTC+00Oil Falls as SPR Release Boosts Supply

Crude oil slipped toward $90.50 a barrel on Tuesday after the US ordered another release from its emergency reserves and Saudi Arabia’s crude exports began to recover. Washington will offer up to 40 million barrels from the Strategic Petroleum Reserve (SPR) in an exchange program—effectively a loan that companies must repay with additional barrels. According to the Energy Department, the initiative is expected to return about 200 million barrels to the SPR over the next year, roughly 20% more than the volume being released. Bids for the exchange are due by October 6. Energy Secretary Wright has indicated that further drawdowns are unlikely. Once this latest release is completed, the SPR is projected to fall to its lowest level since 1982.

At the same time, Saudi Arabia has ramped up flows through its key export pipeline, reportedly restoring about half of its capacity after recent drone attacks. A steady stream of crude also appears to be moving through the Strait of Hormuz via vessels operating covertly. Separately, US and Iranian officials are reported to have held indirect talks with mediators on Monday.