News

Trump’s plan to sell US strategic petroleum reserve lowers oil prices and undermines OPEC deal

May 24th 2017 - 12:00

As part of its 2018 budget, the Trump administration is proposing to reduce by half the size of the Strategic Petroleum Reserve, a cushion against global price shocks and supply disruptions. The administration said it expects the drawdown to reduce the federal deficit by $16.6 billion, part of a package of deficit reduction measures over the next 10 years.

The selling of part of the Strategic Petroleum Reserve would mean a greater supply to the international market, thus having a dampening effect on prices, said Sijbren de Jong, in a conversation with Trend News Agency on May 24.

The full interview can be read here.