An Energy Department source told Reuters on Monday (16), that the U.S. may begin buying locally produced oil for its Strategic Reserve in two weeks, taking the advantage of filling stocks in months.
President Donald Trump has said he has ordered the Energy Department to fill reserves to the limit of its capacity. The measure aims to help domestic producers who have suffered from falling oil prices in the current global picture.
The Department of Energy said the reserve, which has a capacity of 713 million barrels, could receive an additional 77 million barrels of oil. It is not yet clear how the government would finance these purchases. The cost of 77 million barrels at Monday's prices for U.S. oil (WTI), of less than $30 per barrel, would be about $2.3 billion.