US will hand over oil tanks in strategic reserve

US, WASHINGTON (ORDO NEWS) — The United States will lease oil companies oil storage capacities in the country’s strategic reserve, Reuters reported, citing sources familiar with the issue.

“The Presidential Administration (Donald USA – ed.) Trump plans to lease energy companies a place to store oil in the strategic oil reserve,” the agency said.

Sources note that the initiative was proposed in connection with the government’s refusal to buy oil in the country’s strategic reserve after it failed to get congressional approval to finance this action. The new plan could help the US deal with the growing surplus in the oil market.

The Ministry of Energy announced plans to purchase in mid-March, the first batch was to be 30 million barrels, and a total of 77 million barrels were planned to be purchased. It was assumed that the Ministry of Energy as a result will fill the strategic oil reserve, which currently contains about 635 million barrels of oil.

The coronavirus pandemic has reduced global demand for oil and fuel, as governments, in an effort to slow the spread of COVID-19, are closing borders and restricting movement around the world. The oil price war that erupted in early March also exacerbated the crisis, flooding it with raw materials.

The World Health Organization on March 11 announced an outbreak of a new coronavirus infection COVID-19 with a pandemic. According to the latest WHO data , more than 750 thousand cases of infection have been recorded in the world, more than 36 thousand people have died.


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