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The United States should take the opportunity to replenish its national oil reserves. After the historic oil price race, President Donald Trump announces that he wants to take advantage of the extreme price situation.
– We replenish our national oil reserves, the strategic reserves. We want to put up to 75 million barrels in the reserves, he said Donald trump at his daily press conference overnight through Tuesday.
A little later, during the press conference, he clarified that the government will only buy as much oil as Congress allows. Alternatively, the government may lease storage space to store the oil there, according to Trump.
Reduce the price
Alarms that oil company stocks, especially in Oklahoma, will soon be filled by Monday’s collapse in prices for West Texas Intermediate (WTI) oil.
The deadline for WTI oil contracts for delivery in May was about to expire and their price dropped to minus $ 37. Traders then had to pay to get rid of their oil.
The reduced demand for oil in the wake of the coronavirus pandemic has caused the price of WTI oil to plummet from the $ 60 barrel, which was the price at the end of the year.
Used in times of crisis
Already in mid-March, the president said he wanted to replenish the United States’ national oil reserves. On April 17, it contained 635 million barrels and was authorized to store just over 713 million barrels. Oil is stored in four underground layers along the coast of the states of Texas and Louisiana. The total capacity is 727 million barrels of oil.
The national reserves of the EE. USA They are intended for use in times of crisis, such as during the 1991 Iraq War or after the devastating 2005 Hurricane Katrina.
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