Oil lobbyists call on Trump to buy the dip for strategic reserve
America’s emergency oil reserves have been used in the past to provide relief from price spikes caused by wars or hurricanes. Now, they could be deployed to help oil drillers reeling from the worst market rout in nearly 30 years.
Under a novel plan that’s been pitched by some industry lobbyists, the Trump administration would take advantage of the recent collapse in prices to snap up barrels on the cheap, according to three people familiar with the matter who asked for anonymity to detail private deliberations.
The idea of replenishing the Strategic Petroleum Reserve — which comes as the Trump administration considers a broad coronavirus relief package — would enable the government to take at least 78 million barrels off the world market and provide a modest bump in prices.
