Trump Administration Approves Loan Of 53.3 Million Barrels From US Strategic Oil Reserve
The US will loan 53.3 million barrels of crude oil to energy firms to help stabilise global markets amid rising tensions.
The US will loan 53.3 million barrels of crude oil to energy firms to help stabilise global markets amid rising tensions.
The administration of US President Donald Trump has announced plans to loan 53.3 million barrels of crude oil from the United States Strategic Petroleum Reserve (SPR) to energy companies as part of an international effort aimed at easing tensions in global oil markets.
The move comes amid surging oil prices triggered by the ongoing US-Israeli conflict with Iran and disruptions linked to the Strait of Hormuz, a critical global shipping route through which roughly 20 percent of the world’s daily oil supply normally passes.
According to the US Department of Energy (DOE), nine companies — including Exxon Mobil, Trafigura, and Marathon Petroleum Company — participated in the programme. Together, they borrowed about 58 percent of the 92.5 million barrels the government had initially offered from the reserve last month.
The latest release forms part of a broader strategy by the DOE, which had already loaned approximately 80 million barrels earlier this spring as Washington works toward releasing a total of 172 million barrels from the reserve.
The action aligns with a March agreement reached between the United States and more than 30 member countries of the International Energy Agency to collectively release around 400 million barrels of oil from strategic reserves worldwide.
The coordinated intervention was designed to ease mounting pressure on global energy prices following Iran’s closure of the Strait of Hormuz during the escalating regional conflict.
IEA Executive Director Fatih Birol described the situation as the “biggest-ever energy crisis,” warning that additional supply disruptions could prompt further emergency releases from strategic reserves.
Speaking earlier this month, Birol said IEA member countries had so far released about 20 percent of their available reserves and remained prepared to take additional action if necessary.
The spike in energy prices has also become a growing political concern in the United States ahead of the November midterm elections, where Republicans are seeking to maintain slim majorities in Congress. Rising fuel costs could potentially affect voter sentiment as Americans grapple with inflationary pressures.
Data from AAA showed that average US gasoline prices climbed to $4.52 per gallon on Monday — the highest level recorded since 2022.
Under the DOE arrangement, companies borrowing crude oil from the SPR are expected to repay the loans in crude, alongside premiums of up to 24 percent. Officials say the mechanism is designed to stabilise energy markets without imposing additional costs on American taxpayers.
The Strategic Petroleum Reserve, stored in underground caverns across four sites along the coasts of Texas and Louisiana, currently holds around 384 million barrels of crude oil — an amount equivalent to less than four days of global oil consumption.
