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US to add 75 mn barrels of oil to strategic reserve, says President Donald Trump
AFP
Last Updated IST
US President Donald Trump. Credit: Reuters File Photo
US President Donald Trump. Credit: Reuters File Photo

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.

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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.

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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(Published 21 April 2020, 08:58 IST)