US President Donald Trump, on Monday 16 September, said that he has authorised the release of oil from US's Strategic Petroleum Reserve (SPR), if needed. He said that the oil will be released in a quantity to be determined because of Saturday's attack on Saudi Arabia's oil facilities.
The US president talked about the release in a tweet. He said that "based on the attack on Saudi Arabia, which may have an impact on oil prices, i have authorised the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount sufficient to keep the markets well-supplied."
He also said that he has informed all appropriate agencies to expedite the approvals of the oil pipelines.
Trump's announcement came after Saudi Arabia's national oil manufacturer, Aramco had to cut its production by about 50 per cent, after a series of drone strikes hit two Saudi Arabian plants. The attacks have cut Saudi's production capabilities by half.
The country produced 9.85 million barrels per day in August, according to CNBC which cited US Energy Information Administration data. Reports suggest that oil prices have surged as much as 12 per cent after the drone attack on the Aramco plants on Saturday, 14 September.
(With inputs from CNBC and Reuters)
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