+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Oil falls after report says Trump is considering tapping the emergency oil reserve

Jul 14, 2018, 01:02 IST

President Donald Trump speaks in the Roosevelt Room of the White House in Washington, Friday, April 28, 2017, before signing an Executive Order directing the Interior Department to begin review of restrictive drilling policies for the outer-continental shelf. From left are, Vice President Mike Pence, Rep. Don Young, R-Alaska, the president, Sen. Bill Cassidy, R-La., and Commerce Secretary Wilbur Ross.AP Photo/Pablo Martinez Monsivais

Advertisement

Oil prices bounced around Friday afternoon following reports that the Trump administration could tap an emergency oil reserve ahead of the midterm election.

West Texas Intermediate fell 0.5% to $70 a barrel at 3:25 p.m. ET. Crude, the international benchmark, rose 0.75% to $75.09.

The Trump administration is "actively considering" a release from the Strategic Petroleum Reserve, the world's largest oil stockpile, sources told Bloomberg. Options under review range from a 5-million-barrel test sale to a larger release of 30 million barrels.

The White House did not respond to an email earlier this week requesting comment on whether the administration is considering a release.

Advertisement

The potential release could come ahead of the midterm election in November, where rising prices at the pump could hurt Republicans in competitive races. A release could at least temporarily ease global-supply concerns that have driven energy prices to four-year highs.

The SPR is mainly intended to be an emergency stockpile the US can turn to during war or natural disaster. But non-emergency releases can be authorized to respond to minor supply disruptions or to raise federal revenue, according to the Energy Department.

WTI is up 52% year-over-year.

NOW WATCH: Why Rolex watches are so expensive

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article