White House [Public Domain]
The Trump administration plans to buy millions of barrels of oil as the oil industry continues to slump amid supply and demand issues.
According to The Hill:
The U.S. government will buy 30 million barrels of oil from producers amid a financial downturn for the industry.
The Department of Energy (DOE) announced Thursday it would conduct the sales to fill the Strategic Petroleum Reserve, fulfilling a pledge by President Trump to offer assistance to the oil industry as prices plummet with the twin threats of the coronavirus and an oil pricing war between Saudi Arabia and Russia.
But those initial 30 million barrels are a far cry from Trump’s pledge to fill America’s emergency fuel supply “right up to the top,” maxing out at 77 million barrels. The Energy Department said additional purchases will follow but has not yet laid out a timeline.
“DOE is moving quickly to support U.S. oil producers facing potentially catastrophic losses,” Energy Secretary Dan Brouillette said in a statement.
The move will likely anger Democrats who have spoken out against any aid package to the fossil fuel industry.