The Trump administration announced it will loan 53.3 million barrels of crude oil from the U.S. Strategic Petroleum Reserve to energy companies as part of an international effort to stabilize oil markets affected by the U.S.-Israeli conflict with Iran.
Nine companies, including Exxon Mobil (NYSE:XOM), Trafigura, and Marathon Petroleum Company, borrowed approximately 58% of the 92.5 million barrels the Department of Energy offered to loan last month.
The DOE has already loaned about 80 million barrels from the SPR earlier this spring and aims to release a total of 172 million barrels. This amount represents the U.S. commitment under a March agreement with more than 30 International Energy Agency member countries to release about 400 million barrels globally.
The coordinated release aims to address oil and fuel price increases following Iran’s closure of the Strait of Hormuz, a passage that typically handles about 20% of global oil transport daily.
Fatih Birol, the IEA’s head, described the war as creating the largest energy crisis on record. On May 7, Birol stated that the IEA is prepared to release additional oil from strategic reserves if supply disruptions from the conflict persist. Member countries have released 20% of available reserves so far, according to Birol.
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