The United States government has said oil companies have agreed to borrow about 40 million barrels of crude from the Strategic Petroleum Reserve, the final batch of the US share of a global deal aimed at controlling fuel prices after the US and Israel started the war on Iran. The Energy Department said it awarded contracts on 28 October for nearly 16.8 million barrels, to Gunvor, Trafigura Trading, Phillips 66 and Vitol, after an earlier award of 23.8 million barrels on 13 October. Washington agreed in March to loan 172 million barrels from the reserve as part of a wider deal with about 30 countries in the International Energy Agency to release 400 million barrels from reserves around the world. Rather than selling the oil, the US is loaning it and charging interest in barrels: more than 216 million barrels are due to be returned starting early next year, including 44 million additional premium barrels. Heavy use of the reserve has a cost: the stockpile is now at its lowest since 1982, weakening its ability to calm future shocks. For fuel-importing countries like Pakistan, the loan adds supply now, but a thinner US reserve leaves less cushion if the conflict escalates further. Sources: Reuters, US Department of Energy. Written in our own words for information only.