August 15, 2020

Trump will fill the US crude oil reserves with another 75 million barrels



US President Donald Trump announced Monday that his government will store oil to fill the country’s reserves adding another 75 million barrels taking advantage of the low price of crude.

“Based on the record lows in the price of oil, at a very interesting level for many people, we are going to fill our Strategic Petroleum Reserve, we hope to store 75 million barrels in the reserves,” Trump announced at a press conference.

The president stated that “it would be the first time in a long time” that the reserves were filled.

Trump said he would like the government to acquire that crude, but left the door open to just store it for the oil companies.

“It is a good time to buy oil and we would like Congress to approve it instead of storing it for large companies,” said the president, who reiterated that “one way or another” it is going to fill the reserves.

“If we could buy it for nothing, we would keep everything (oil) we can get. The only thing I like more than that is when they pay to take it away,” added the president, referring to the negative prices registered today.

“But that’s in the short term, so I don’t think we’ll see it,” he said.

The United States Strategic Petroleum Reserve is the largest in the world and has the capacity for some 800 million barrels stored in tanks in Texas and Louisiana.

Texas Intermediate Oil (WTI) starred on Monday a historic drop of 305% and for the first time since there are statistics it entered negative values, as the price of the US barrel remained at -37.63 dollars.

The collapse is associated with the drop in demand due to the coronavirus pandemic.

While OPEC and its oil-producing allies finalized a pact earlier this month to cut output by 9.7 million barrels per day from May 1, it is feared that it may not be enough to offset the fall in oil prices. demand.

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