US to add 75 mln barrels of oil to strategic reserve amid historic drop in prices

U.S. President Donald Trump addresses the daily coronavirus task force briefing at the White House in Washington. (Reuters)

President Donald Trump said Monday the US would take advantage of the historic drop in oil prices to buy 75 million barrels to replenish the national strategic stockpile.

“We are filling up our national petroleum reserves... You know, the strategic reserves. And we are looking to put as much as 75 million barrels into the reserves themselves,” Trump told reporters at his daily coronavirus press conference.

US oil prices crashed to unprecedented lows Monday as futures in New York ended in negative territory for the first time amid a devastating supply glut that has forced traders to pay others to take the crude off their hands.

Read more: ‘The death of US shale:’ Oil prices turn negative as coronavirus plunges market

The president had announced his intention on March 13 to fill the Strategic Petroleum Reserve (SPR) to the brim.

As of April 17, it contained 635 million barrels of its current authorized limit of 713.5 million barrels.

Read more: US oil plunges below zero for first time with May contract ending

Stored in a complex of four underground sites along the Gulf coasts of Texas and Louisiana, in the south of the United States, the SPR has a total storage capacity of 727 million barrels.

This is intended for use in case of emergencies such as the 1991 Iraq War, or in 2005 after Hurricane Katrina.

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Last Update: Wednesday, 20 May 2020 KSA 10:02 - GMT 07:02
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