💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

U.S. could store another 'several hundred million' barrels of oil: Mnuchin

Published 04/29/2020, 06:36 PM
Updated 04/29/2020, 06:40 PM
© Reuters. FILE PHOTO: FILE PHOTO: Treasury Secretary Steven Mnuchin speaks during the daily coronavirus task force briefing at the White House in Washington
CL
-

WASHINGTON (Reuters) - President Donald Trump on Wednesday said his administration will soon release a plan to help U.S. oil companies, which Treasury Secretary Steven Mnuchin said could include adding millions of barrels of oil to already-teeming national reserves.

Mnuchin did not provide details on where the government might find the storage capacity as the global coronavirus pandemic crushes demand for gas.

"We're also exploring potentially having the ability to store another several hundred million barrels, so we're looking at lots of different options," Mnuchin said during a White House briefing on the coronavirus' effects on industry.

A team made up of people from the Treasury and Energy Departments was working on the options, Mnuchin said.

The U.S. Strategic Petroleum Reserve (SPR) currently holds roughly 636 million barrels of crude, and has the ability to hold about 714 million barrels. Fuel demand has dropped by roughly 30% worldwide while supply has ballooned, so storage is dwindling.

Trump said that he sees helping the oil industry as a top priority. When asked when he would release a plan to help oil companies, Trump said: "I would say shortly."

"It's unbelievable. It's prices that are so low, and in some cases we're storing oil and getting paid for storage because we have a tremendous capacity for it," Trump said. "So what's happened with these strategic reserves is incredible."

© Reuters. FILE PHOTO: FILE PHOTO: Treasury Secretary Steven Mnuchin speaks during the daily coronavirus task force briefing at the White House in Washington

Oil prices on Wednesday surged 10% after U.S. crude stockpiles grew less than expected and fuel consumption seemed possibly poised for a uptick as some states, as well as European countries, ease coronavirus restrictions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.