The first batch of 86 million barrels of U.S. strategic crude oil will be released to the market next week, using a loan-for-oil premium model.

Odaily reported that the U.S. Department of Energy has issued a tender for the allocation of crude oil from the Strategic Petroleum Reserve, with the first batch of 86 million barrels expected to be released to the market before the end of next week. According to the document, participating companies are required to return the borrowed crude oil to the Department of Energy and additionally repay a certain amount of crude oil as a premium. The document states that this approach can both replenish the U.S. Strategic Petroleum Reserve and stabilize the market. The U.S. government also announced plans to replenish about 200 million barrels of the Strategic Petroleum Reserve over the next year to maintain U.S. energy security. Data from the U.S. Energy Information Administration shows that as of the 6th of this month, the U.S. Strategic Petroleum Reserve stood at 415.4 million barrels. (CLS)