Exxon To Get Crude From US Strategic Reserves

The Energy Department said Thursday it will loan 8.5 million barrels of crude oil to three U.S. refiners whose supplies were disrupted by Hurricane Katrina.

"With the reserve fully operational, we will be able to start delivering this oil as soon as tomorrow," Energy Secretary Samuel Bodman said in a statement. The oil will be drawn from the reserve under short-term contractual agreements, with equivalent supplies to be returned to the reserve later.

Exxon Mobil Corp. will receive 6 million barrels of oil from the nation's emergency stockpiles and Placid Refining, an independent refinery in Port Allen, La., will receive 1 million barrels, the department said.

Exxon had requested 3 million barrels of "sweet", or low-sulfur, and 3 million barrels of "sour", or high-sulfur, crude from the Strategic Petroleum Reserve located in the Gulf of Mexico.