The United States has authorised an emergency exchange of up to 400,000 barrels of crude oil from its Strategic Petroleum Reserve to support a Louisiana refinery facing a disruption to its crude deliveries. The US Department of Energy announced the move on 23 October 2026, saying the oil would go to Phillips 66's Lake Charles refinery.

The crude will come from the West Hackberry storage site and has been authorised for immediate delivery, according to the department. It is intended to offset temporary problems affecting deliveries to the refinery and to support continued production of transport fuels for Louisiana and surrounding markets.

An exchange, not a sale

The arrangement is structured as an exchange rather than an outright sale. Under its terms, Phillips 66 must return the borrowed crude plus additional premium barrels, so the reserve ends up holding more oil than was withdrawn. The department said this would replenish and strengthen the reserve at no additional cost to taxpayers.

Reserve already at its lowest since 1982

Reuters reported that the reserve was already at its lowest level since 1982, after earlier drawdowns during the war involving Iran and, under the previous administration, following Russia's full-scale invasion of Ukraine. The Lake Charles refinery can process about 264,000 barrels a day, Reuters reported, putting the 400,000-barrel exchange at roughly a day and a half of its capacity. Phillips 66 has said it does not anticipate impacts on the refinery's operations.

Why a single refinery matters

A single refinery does not set national fuel prices, but refineries turn crude into the petrol and diesel households and hauliers use daily. Keeping this plant supplied aims to stop a local squeeze reaching pumps nearby, even while global crude stays elevated on Middle East tensions.