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What is the story about?
US President Donald Trump said on Sunday (August 30) that oil from a recently struck deal with Venezuela will be used to replenish the Strategic Petroleum Reserve, which has been drawn down sharply in recent years to respond to global supply disruptions and high fuel prices.
Trump said in a social media post that the "topping out" process will begin shortly, describing the Venezuelan oil as a “Gift from Venezuela to the People of the United States.”
It is unclear how quickly the Venezuela deal could provide oil for the reserve or deliver any near-term benefit to US motorists. The agreement Trump announced on Friday is aimed at reviving Venezuela's battered oil industry, but it will require significant investment and infrastructure work before production can rise substantially.
The reserve held about 290 million barrels as of August 21, near a 44-year low, after the United States drew down its stockpile under both the Biden and Trump administrations in response to global supply disruptions, including Russia's invasion of Ukraine and the conflict with Iran.
Oil prices jumped more than $1 a barrel on Monday after the US attacked an Iranian island in the Strait of Hormuz and drew retaliation from Tehran, as conflict in the Middle East extended into its sixth month.
Brent crude futures climbed $1.08, or 1.23%, to $89.18 a barrel at 0040 GMT while US West Texas Intermediate crude was at $84.32, up 92 cents, or 1.10%.
US forces struck two launchers on Iran's Larak island in the Hormuz Strait on Sunday, the first known American strikes on the Gulf nation since late July.
In response, Iran attacked two US air bases in Jordan, Iranian media reported on Monday citing Iran's Revolutionary Guards.
Also Read:Record Dates This Week: India Glycols demerger, Multiple PSU stocks trade ex-dividend; Check full list
Trump said in a social media post that the "topping out" process will begin shortly, describing the Venezuelan oil as a “Gift from Venezuela to the People of the United States.”
It is unclear how quickly the Venezuela deal could provide oil for the reserve or deliver any near-term benefit to US motorists. The agreement Trump announced on Friday is aimed at reviving Venezuela's battered oil industry, but it will require significant investment and infrastructure work before production can rise substantially.
The reserve held about 290 million barrels as of August 21, near a 44-year low, after the United States drew down its stockpile under both the Biden and Trump administrations in response to global supply disruptions, including Russia's invasion of Ukraine and the conflict with Iran.
Oil prices jumped more than $1 a barrel on Monday after the US attacked an Iranian island in the Strait of Hormuz and drew retaliation from Tehran, as conflict in the Middle East extended into its sixth month.
Brent crude futures climbed $1.08, or 1.23%, to $89.18 a barrel at 0040 GMT while US West Texas Intermediate crude was at $84.32, up 92 cents, or 1.10%.
US forces struck two launchers on Iran's Larak island in the Hormuz Strait on Sunday, the first known American strikes on the Gulf nation since late July.
In response, Iran attacked two US air bases in Jordan, Iranian media reported on Monday citing Iran's Revolutionary Guards.
Also Read:Record Dates This Week: India Glycols demerger, Multiple PSU stocks trade ex-dividend; Check full list
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