Trump’s Response to Free Oil in America: Time to Buy Oil
Donald Trump, the President of the United States, in response to the negative pricing of oil in the country announced that now is the appropriate time to purchase oil. Trump said he plans to purchase 75 million barrels of oil as strategic reserves.
The President of the United States, in response to the negative pricing of oil in the country, said “It’s time for us to buy oil”. He announced the purchase of 70 million barrels of oil.
Donald Trump, the President of the United States, in response to the negative pricing of oil in the country during his daily press conference in Washington, said that his administration will take advantage of this opportunity and will purchase up to 75 million barrels of cheap crude oil. Trump emphasized that he will request the necessary budget from Congress for this purpose. He said “It is a very good time to buy oil.”
Based on the latest annual report in the United States, the strategic oil reserves of the country amount to 700 million barrels.
Trump further assured that soon the price of oil will return to between 25 to 28 dollars per barrel.
The President of the United States attributed one of the factors in the decline of oil prices to the impact of financial market transactions. The U.S. oil “futures” contract for May expires on Tuesday, which is why many oil dealers sold oil at a loss.
The President of the United States also announced that to compensate for oil losses and to support the shale oil drilling industry in the country, he may examine the issue of importing oil from Saudi Arabia.
Why Did Oil Become Free in America?
The price of American light crude oil on Monday, the first of Ordibehesht, for delivery in May fell by up to 300 percent compared to Friday and at some moments dropped to negative 37 dollars.
Negative pricing for oil is an unprecedented phenomenon throughout history and means that American producers are not only ready to deliver oil shipments free of charge to customers, but also pay 37 dollars per barrel to “pass off” the shipments.
The current oil market event surprised experts to the extent that they are unable to analyze the situation.
Reza Zandi, an oil expert, wrote on his Twitter page about this: “Analyzing what is currently happening to the price of American light crude oil is not simple. Because an unprecedented event has occurred in history. Various factors are playing a role in these historic moments. But do not doubt that it will have significant economic and political consequences. Both in the short term and in the long term.”
Oil analysts were continuously publishing the decline of American light crude oil prices.
Trump’s Plan to Prevent Further Crisis
The main reason for the collapse of American light crude oil price has been reported as the filling of oil storage tanks and decreased demand. Oil storage on sea and land continued in recent days with the decline in oil prices, but now the tanks are full and there is no more room for storage.
Some experts announced that America can impose tariffs on oil imports to deal with the current oil crisis, and if this measure is ineffective, Trump will be forced to pay the owners of shale drilling companies to end their production. According to some experts, this action by Trump could be an effective lever to return oil prices to normal.
Source: DW
