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Amidst Saudi Attacks, Trump Administration Ready To Dig Into The Petroleum Reserves

Amidst Saudi Attacks, Trump Administration Ready To Dig Into The Petroleum Reserves

On Saturday, the Trump administration has said that it is ready to dig into the emergency reserves of oil if the need arises post the attacks in Saudi Arabia have shut over half of the output of crude in the largest oil exporter in the world.

Amidst Saudi Attacks, Trump administration Ready to dig into the petroleum reserves only for the third time in its history

Amidst Saudi Attacks, Trump Administration Ready To Dig Into The Petroleum Reserves

The Iran-aligned Houthis from Yemen have claimed the responsibility for attacks that has knocked close to 5 % of the production globally which is nearly 5 million barrels however the blame has been put by the US administration completely on Iran.

The reserves are managed by the department of energy which is held in the underground caverns which is guarded heavily on the coasts of Louisiana and Texas. The largest oil reserve in the world at present is holding close to 645 million oil barrels which is divided into 250 million barrels of light sweet oil and heavy sour crude to the tune of 395 million barrels.

The Strategic Petroleum Reserve was created in the year 1975 after the push form Henry Kissinger who was the Former Secretary of State. This had happened after the gasoline price hike by the Arabs had damaged the economy in the United States.

Under the law in United States, an emergency sale from the reserve can be called for by the president if the country faces a disruption in supply that is threatening the economy.

The reserves have been used for this purpose on three occasions most recent of them being in the year 2011 after violence took place in Libya.

There have been calls by many politicians to reduce the size of the reserve and the calls maybe fading after the attacks on Saturday.

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