As the world stands still amidst the COVID-19 pandemic, the global economy goes plummeting down. With lockdown restrictions placed in most of the countries around the globe, demand for crude has drastically gone down shocking everyone.
Trump announced at a briefing, “Based on the record low price of oil, it is at a level that is very interesting to a lot of people, we’re filling up our national petroleum reserves, strategic reserves and we are looking to put as much as 75 million barrels into the reserves themselves that would top it out, that would be the first time in a long time its been topped out and we’d get it at the right price.”
President Trump plans on making the Strategic Petroleum Reserve (SPR) a storage house for all of the U.S.
Since the global demand took a cutback due to the pandemic the value of crude has gone down 60 percent this year alone. Another reason for the oil crisis can be attributed to the price war between Saudi Arabia and Russia resulting in a delay in the production cut in concert with OPEC.