Trump announces his intention to take advantage of the unprecedented collapse of US oil

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money and business

US President Donald Trump has announced that he intends to take advantage of the unprecedented collapse in crude oil prices, which he described as “very exciting”, in order to fill the strategic reserve of the United States.

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“Depending on the unprecedented decline in oil prices, we will fill our national strategic oil reserves,” Trump said, at a press conference Monday evening.

Trump said his administration hoped to “add up to 75 million barrels of oil to the reserve, to be full for the first time in a long time,” while the US president described the current oil prices as “very exciting.”

The research for this measure comes against the backdrop of an unprecedented collapse of US crude oil earlier in the day.

The price of US West Texas Intermediate oil barrel (WTI) fell sharply during Monday’s trading, falling more than 306%, its lowest level in its history.

The price of a barrel of record US oil was $ 37.63 below zero, and for the first time in history sellers would have to pay buyers to take oil futures contracts.

The reasons for this situation are due to a significant decrease in oil demand, coinciding with the spread of the Corona virus pandemic around the world, and the lack of sufficient capacity to store excess oil quantities in the United States, which is expected to run out within two weeks.

Source: Agencies

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