United States on Tuesday offered to loan energy companies 40 million barrels of oil from its Strategic Petroleum Reserve, an attempt to control rising prices due to the Ukraine and Iran conflict.In March, the United States committed to lend 172 million barrels of oil from the SPR, forming part of a broader agreement among roughly 30 International Energy Agency member countries to release 400 million barrels in total.In June, the Trump administration offered to lend the final 40 million barrels under that IEA arrangement. Later that month, however, it disclosed that companies had agreed to borrow only around 500,000 barrels.The move comes amid an energy crisis that has erupted due to the escalating Russia-Ukraine war, and America’s inconclusive conflict with Iran.Ukraine has been increasingly targeting Russian energy facilities in order to curb the financial resources that sustain Russian war efforts.On Sunday night, it struck oil facilities in Russia’s Krasnodar region.“We are consistently using our long-range capabilities to respond to Russian strikes”, Ukraine President Volodymyr Zelenskyy said on X, adding that Moscow must stop escalating the conflict.
Oil strain on India
Meanwhile, Reuters reported on Tuesday that Indian refiners expect Russian oil supplies to decline further in October and November.Lower Russian exports and fierce competition from China are forcing the country to buy costlier alternatives for the rest of the year.“Demand from China has been really high. They were willing to book cargoes in advance and to pay firmer prices compared to Indian refiners,” said a source involved in the sale of Russian crude.Analytics firm Kpler expects Russian oil arrivals in India to fall to about 1.75 million barrels per day in September, the lowest level since April. Trade data showed that arrivals had already dropped 16.5 per cent from July to around 2.1 million bpd in August, though Russia remained India’s main supplier, ahead of the UAE and Venezuela.The overall availability of Russian exports has reportedly shrunk, especially from the Black Sea port of Novorossiysk, where shipments have roughly halved because repeated drone attacks have suspended loadings.
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