US to loan companies up to 92.5 million barrels of Strategic Petroleum Reserve oil

WASHINGTON — President Donald Trump’s administration said Thursday it is seeking to loan up to 92.5 million barrels of crude oil to energy companies from the Strategic Petroleum Reserve (SPR) as part of a global effort to steady oil markets disrupted by the U.S.-Israeli war with Iran.

The barrels are part of a broader 172 million-barrel commitment from the SPR that the United States agreed to in March under a deal with more than 30 countries in the International Energy Agency (IEA). The coordinated release aims to inject about 400 million barrels into global markets to ease supply pressures.

IEA Executive Director Fatih Birol has said the conflict has triggered what he described as the largest energy crisis in history.

The United States previously offered 126 million barrels in three separate rounds, but oil companies borrowed less than 80 million barrels, or roughly 63% of the total made available.

If fully taken up, the new offer would bring total U.S. SPR loans to the targeted 172 million barrels. Bids are due May 4.

Rising fuel costs pose a political risk for Trump’s Republican allies, who are working to maintain narrow majorities in Congress ahead of the November midterm elections. U.S. gasoline prices averaged $4.30 per gallon on Thursday, the highest level since July 2002, according to AAA data.

Crude oil prices, which influence the cost of gasoline, jet fuel and diesel, have continued to climb despite SPR releases. Global oil prices briefly surged above $126 per barrel, a four-year high, driven by concerns that the conflict could disrupt Middle East supply routes over a prolonged period.

Oil released from the SPR is provided as loans, with companies required to return the crude along with a premium of up to 24% in additional barrels. The Department of Energy says the structure is designed to stabilize markets without costing U.S. taxpayers.

The SPR, which stores oil in underground salt caverns at four sites across Texas and Louisiana, currently holds about 398 million barrels—roughly equivalent to four days of global consumption.

Deliveries of the crude are scheduled between June and August, while repayment deadlines for companies extend from early next year through mid-2029.

-Reporting by Timothy Gardner, Katharine Jackson and Ryan Patrick Jones; Editing by Caitlin Webber, Franklin Paul, Keith Weir and David Gregorio/Reuters