Trump Declares Strategic Petroleum Reserve Will Be Refilled 'Soon'

On Monday (local time), U.S. President Donald Trump, speaking at a midterm election rally at the University of South Alabama in Mobile, Alabama, said the United States would refill its Strategic Petroleum Reserve (SPR — crude oil stockpiled by the government to prepare for emergencies such as spikes in oil prices) in the near future. "We're working with Venezuela, and we're pulling out billions of dollars' worth of oil," he said, adding, "We'll refill the Strategic Petroleum Reserve soon, free of charge." However, the president did not specify the timing, scale, or method of the SPR expansion.

The U.S. government decided late last month to release up to 40 million additional barrels from the reserve. Inventories have fallen below 284 million barrels, the lowest level since 1982. The sharp drop in SPR stocks is behind the discussion over refilling the reserve.

President Trump also cited Europe's agreement to release stockpiled diesel as a measure to stabilize oil prices. On Monday afternoon (local time), the G7, chaired by French President Emmanuel Macron as head of the rotating presidency, held a meeting and issued a joint statement. The G7 will jointly release 100 million barrels of diesel, crude oil, and other products over the next four months through the International Energy Agency (IEA), with a substantial amount of diesel to be released first within the initial 20 days. The G7 also agreed not to ban diesel exports among member states and to coordinate refinery maintenance schedules with one another.

At the same event, President Trump claimed that if the Democrats win, a Great Depression like that of 1929 would strike, arguing that taxes would be raised sharply and tax cut policies reversed. He also said that energy prices would fall even further once the war with Iran is over.