In a significant development, the giant oil exporters of the world have started drawing back millions of crude oil barrels from the stockpiles of the U.S. government’s emergency reserves. Earlier, for managing the glut of crude, it rented a storage facility. It all happened following the plunge of demand due to the coronavirus pandemic and lockdowns.
Out of the 23 million barrels of oil that the companies promised to preserve in SPR (Strategic Petroleum Reserve), they have rolled back 2.2 million since August 1. The last date for pulling oil back is March 31, 2020.
As per an official of the energy department, nine crude oil companies had rented the space for a meagre fee from the reserves. It included Alon USA, Chevron and Exxon.
Now, there is a possibility of commercial inventory drawdowns going slow due to the drawing back of oil from the Strategic Petroleum Reserve. It has happened due to the companies prioritizing the selling of barrels.
As per trade sources, ATMI has grabbed the space of six hundred thousand barrels of storage capacity. However, Exxon rules the chart by getting hold of the most significant share.