Amid the Hormuz crisis, the US bets on oil prices, now offering a 'loan' of 53.3 million barrels

The US has made a major move to control the growing volatility in the global oil market. 

The Trump administration announced on Monday that it will lend 53.3 million barrels of crude oil from its Strategic Petroleum Reserve (SPR) to energy companies. The move is aimed at controlling rising oil prices caused by the Iran-Israel war and the Strait of Hormuz crisis.

According to the Department of Energy (DOE), nine companies, including ExxonMobil, Trafigura, and Marathon Petroleum Company, have applied to borrow oil from the SPR.

However, only 58% of the 92.5 million barrels of oil made available by the department last month were taken. The US had already released about 80 million barrels of oil this spring.

This decision is part of a global agreement reached with International Energy Agency (IEA) member states. In March, more than 30 countries agreed to release oil from strategic reserves if needed, to stabilize markets in the event of global supply disruptions. 

IEA chief Fatih Birol recently stated that the current war could trigger the world's biggest energy crisis ever. He warned that the agency is prepared to release more strategic reserves if supply disruptions continue. IEA member states have already released approximately 20% of their available reserves.

Companies will have to return this oil

According to the DOE, this oil supplied to companies will have to be returned as crude oil later. Furthermore, companies will be required to pay a premium of up to 24%. The government says this will stabilize the market and prevent additional burden on taxpayers. 

Currently, the SPR holds approximately 384 million barrels of oil, equivalent to just four days of global consumption. Consequently, the challenge of maintaining reserves for the United States could increase if the global energy crisis deepens.