Skip to content

The US offers its emergency reserves of crude oil to stabilize the world oil market

September 15, 2019

WASHINGTON, Sep. 15 (Reuters / EP) –

The United States Government has announced on Saturday that the country's emergency oil reserves may be used, if necessary, after attacks in Saudi Arabia thwarted more than half of the crude oil production of the world's largest oil exporter. world.

The Strategic Petroleum Reserve, administered by the Department of Energy, is located on the coasts of Texas and Louisiana and currently contains about 645 million barrels of oil. Former Secretary of State Henry Kissinger promoted the creation of the SPR in 1975, following the Arab oil embargo that raised fuel prices and damaged the US economy.

Under US law, the president can request an emergency sale of the SPR in case the country faces a supply disruption that could threaten the economy. This reserve has been used for that purpose three times, the last one in 2011 in Libya.

The Secretary of Energy, Rick Perry, has ordered his department to work in coordination with the International Energy Agency (IEA) to launch a “global collective action” to supply world oil markets.

Saudi Arabia reported on Saturday attacks on two facilities of the state oil company Aramco with a total of ten drones, although without causing personal injury. One of the attacked facilities is located in Abqaiq, near Damman, in the Eastern Province, while the other is located in the Hijrat Jurais oil field.

The Huthis have claimed this attack with ten drones against the Abqaiq and Jurais refineries in eastern Saudi Arabia, as explained by a Huthi spokesman, General Yahya Saree, who has warned that these operations will “expand” to be “more painful “if Saudi Arabia continues its attacks in Yemen.

US Secretary of State Mike Pompeo has accused Iran of being responsible for the attack. “Tehran is after almost a hundred attacks against Saudi Arabia while (Iranian President Hasan) Rohani and (Foreign Minister Mohamad Yavad) Zariv pretend they are for diplomacy,” Pompeo said through a message on Twitter .

Therefore, Pompeo has urged “all nations” to “publicly and unequivocally condemn” these “Iran attacks.” Meanwhile, US President Donald Trump has had a telephone conversation with Saudi Crown Prince Mohamed bin Salmán, in which he has offered US support for “Saudi Arabia's self-defense” and has condemned this attack against the “vital energy infrastructures”.

The Saudi government has added that Trump has agreed on the need to collaborate with Riyadh to “maintain its security and stability” and has stated that these attacks have a negative impact on “the United States economy and the world economy.”