TODAY • 2:55 AM
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US President Donald Trump wants to use the dramatic drop in the price of oil to increase his country’s strategic oil reserves. His government wants to increase reserves by up to 75 million barrels, Trump said on Monday during his daily briefing on the corona crisis at the White House.
According to the President, this amount of crude oil should only be bought up if the US Congress agrees – or if the government can compensate for the costs by renting storage space in federal facilities.
The United States’ current strategic oil reserves are 635 million barrels. Reserves of up to 713.5 million barrels are permitted. One barrel corresponds to 159 liters. The reserves are stored in four underground deposits on the ocean coast of the US states of Texas and Louisiana. They are intended to fill supply gaps that arise during crisis situations.
The oil price slipped deeply into negative territory for the first time in its history on the New York Stock Exchange on Monday. The price of the US reference variety WTI for delivery in May closed at minus $ 37.63 a barrel. That means traders were willing to offer buyers money.
The main cause of the fall in prices is the collapse in demand for the raw material in the corona crisis. The pandemic has led to a drastic decrease in global economic activity, as well as road and air traffic. The background to the historic price crash on Monday was also the fact that May forward contracts can only be sold until Tuesday, but the oil stocks are almost full. That is why there are almost no customers.