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Trump authorizes the release of oil from US emergency reserves after the attack on Saudi Arabia

September 16, 2019

WASHINGTON, Sep 16 (Reuters / EP) –

The president of the United States, Donald Trump, has authorized this Sunday the release of oil from the United States Strategic Reserve in an amount that is yet to be determined to stabilize the world crude oil market after the attack on several oil facilities in Saudi Arabia.

“As a result of the attack on Saudi Arabia, which may have an impact on oil prices, I have authorized the release of oil from the Strategic Petroleum Reserve, if necessary, in an amount to be determined but sufficient to keep the markets well supplied “Trump said in his Twitter account.

“I have also informed all agencies to expedite the procedures of the pipelines that are currently in the process of obtaining permits in Texas and other states,” he added.

In relation to the authorship of the attack, of which Washington blames Iran, the New York tycoon has stated that “there is reason to believe that we know who is responsible.”

“The supply of Saudi oil has been attacked. (…) We are waiting for it to be verified and to see what Saudi Arabia says, who believes it is behind this attack and under what conditions we should proceed,” Trump said, who has stressed that it is “a lot of oil”.

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.

Riyadh reported Saturday attacks on two facilities of the state oil company Aramco with a total of ten drones, but 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.