Energy

U.S. Energy Department to announce loan from emergency oil reserve Tuesday- source

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The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus Mordant

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WASHINGTON, Nov 22 (Reuters) - The U.S. Department of Energy is expected to announce a loan of oil from the Strategic Petroleum Reserve on Tuesday in coordination with other countries, a Biden administration source familiar with the situation said.

The SPR "swap" will be coordinated with several countries, the source said.

U.S. President Joe Biden has asked China, India, South Korea and Japan for a coordinated release of oil stocks as U.S. gasoline prices soar and his approval ratings slump ahead of next year's congressional elections.

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The White House has also repeatedly pressed the OPEC producer group - which plans to meet on Dec. 2 - to maintain adequate global supply.

However, it has not been able to persuade OPEC+, which groups OPEC and allies including Russia, to pump more oil, with major producers arguing the world was not short of crude.

Reuters reported on Monday that Japanese and Indian officials are working on ways to release national reserves of crude oil in tandem with the United States and other major economies. read more

U.S. presidents have authorized emergency sales from the SPR three times, most recently in 2011 during a war in OPEC member Libya. Sales also took place during the Gulf War in 1991 and after Hurricane Katrina in 2005.

Under an SPR swap, oil companies take crude oil but are required to return it - or the refined product, plus interest.

Oil swaps have taken place more frequently, with the last exchange held in September after Hurricane Ida.

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Reporting by Valerie Volcovici and Timothy Gardner; editing by Richard Pullin

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