Trump Says "Looking to" Add 75 mln Barrels of Oil to Strategic Petroleum Reserve
U.S. President Donald Trump said on Monday that the United States is "looking to" add 75 million barrels of oil to its Strategic Petroleum Reserve (SPR) as oil futures tumble into negative territory.
"Based on the record low price of oil that you have been seeing, it is at a level that is very interesting to a lot of people," Trump said at a White House press briefing.
"We are looking to put as much as 75 million barrels into the reserves themselves that would top it out," he said, adding "we would get it for the right price."
The SPR, the world's largest supply of emergency crude oil, was established by the U.S. federal government in the 1970s primarily to reduce the impact of disruptions in supplies of petroleum products.
As of Friday, the SPR held 635 million barrels of crude oil, including 384.7 million barrels of sour crude and 250.3 million barrels of sweet crude.
Trump's remarks came after U.S. oil futures prices crashed to the negative territory for the first time in history on Monday, fueled by pandemic-related demand shock and oversupply fears.
The West Texas Intermediate (WTI) for May delivery shed 55.9 U.S. dollars, or over 305 percent, to settle at -37.63 dollars a barrel on the New York Mercantile Exchange, implying that producers would pay buyers to take oil off their hands.
It marks the first time an oil futures contract has traded negative in history, according to Dow Jones Market Data. The May contract expires on Tuesday.