WASHINGTON (Reuters) – US President Donald Trump said on Friday that the United States would take advantage of low oil prices to buy a massive amount of crude to fill its strategic reserves.
He said, “Based on oil prices … I directed the Minister of Energy to buy, at a very good price, huge quantities of crude oil for storage within the strategic reserve of the United States … We will fill it to the end.”
Oil prices collapsed to about $ 30 a barrel due to the decline in demand resulting from the spread of the Corona virus, and after Saudi Arabia and Russia launched a war at the beginning of the week by a war on oil market shares by pumping at full capacity.
A US Energy Department official said that the Strategic Petroleum Reserve, which is stored in a chain of caves along the Texas and Louisiana coasts, can absorb up to 77 million additional barrels of oil. He did not mention how much oil will be purchased for storage in the reserve, which currently has 635 million barrels.
Press coverage by Jeff Mason and Timothy Gardner in Washington – Ahmed Elhamy prepared for the Arab publication