Khaberni - The administration of US President Donald Trump said on Thursday that it is seeking to lend energy companies up to 92.5 million barrels of crude oil from the strategic reserve, as part of an international agreement to calm oil markets that are experiencing a sharp increase in prices due to the Iran war.
The quantity will be part of a total of 172 million barrels that the United States agreed to withdraw from the strategic oil reserve in March as part of a wider agreement with more than 30 countries in the International Energy Agency to withdraw about 400 million barrels.
Fatih Birol, the director of the International Energy Agency, says the war has led to the biggest energy crisis in history.
So far, the United States has offered 126 million barrels of crude oil in three batches, but oil companies have borrowed less than 80 million barrels, approximately 63% of what was offered.
If oil companies withdraw the full amount offered, it will achieve the United States' goal of withdrawing 172 million barrels. The deadline for submitting bids is May 4th.
High oil prices pose a danger to the Republican colleagues of President Donald Trump in the midterm congressional elections in November.
The average price of gasoline in the United States was $4.30 per gallon on Thursday, the highest level since July 2002, according to data from the American Automobile Association.
Crude oil prices, which are the raw material for gasoline, jet fuel, and diesel, have risen despite withdrawals from the reserves. Global oil prices briefly reached their highest level in four years on Thursday, surpassing $126 per barrel amid concerns that the war will continue to disrupt Middle Eastern supplies for an extended period.
The administration is withdrawing oil from the strategic reserve in the form of loans that companies return with additional barrels as a premium, a system that the Energy Department says will help stabilize markets "at no cost to American taxpayers".
The strategic reserve currently holds about 398 million barrels, roughly equivalent to the world's consumption in four days. It is located in a series of hollowed-out caves at four sites along the coasts of Texas and Louisiana.
