US plans to sell oil reserves

US plans to sell oil reserves The decision will increase pressure on oil prices
December 26, 2016 16:28
US plans to sell oil reserves

Baku. 26 December. REPORT.AZ/ US plans to change one of its key energy security policies and sell its oil reserves.

Report informs citing the, the US Department of Energy (DOE) may sell part of its strategic oil reserves in January, thereby launching the process of reducing the national reserves calculated for years to come. As part of the budget resolution Congress authorized the ministry to sell the oil in the amount of 375.4 mln USD.

Notably, the decision on the establishment of oil reserves was made after the embargo imposed by Saudi Arabia in 1973. They are designed for more than 700 mln barrels of oil, and it is the largest strategic reserve in the world.

Initially it was planned to keep the oil reserves for 90 days and use them in the event of supply disruptions.

Analysts believe that although the volume of sales is not large, but it will increase the pressure on prices. According to a senior editor of industry publication The Bakken Oil Business Journal, the Ministry chose the worst time to test the market.

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