Saudi-Russian War on Shale Forces Trump Into Emergency Purchases in Desperate Bid to Shore Up Price

The bailout of the oil bubble has begun

The Fed to print up money to give to frackers

Editor’s note: 92 million barrels works out to just $3 billion. It won’t do much. This is just the start.

President Trump said Friday that he would buy enough oil to fill up the Strategic Petroleum Reserve in an effort to bolster crude prices and shore up the financial condition of U.S. oil drilling companies.

The decision will allow the federal government to purchase up to 92 million barrels, enough to buy the entire output of Texas in approximately 18 days. The Strategic Petroleum Reserve, held in salt caverns in four locations near the Gulf of Mexico, currently holds 635 million barrels but can store as much as 727 million barrels.

By buying oil in an emergency rather than selling it, the move runs contrary to the original purpose of the Strategic Petroleum Reserve, which was created by President Gerald Ford in 1975 as a response to the Arab oil embargo in 1973-1974. That embargo, by cutting back supplies, sent crude prices soaring and the United States, then a major importer, faced shortages and gas rationing.

In this case, the government is buying oil to bail out domestic oil companies when prices are collapsing rather than selling oil to protect consumers when prices are soaring.

Source: The Washington Post

  1. JustPassingThrough says

    is he buying shale oil or something he can use?
    shale oil is not what u.s. refineries do best.
    can’t expect much from wapo


    Assymetric warfare is a bitch, especially when triggered by DCs so-called allies in Riyadh. With allies like MBS, who needs enemies. All of this for Jared Kushner’s bailout of 666.

  3. Charles Homer says

    As shown in this article, it is interesting to note that Russia’s oil industry has recently implemented a method of working around using the U.S. dollar:

    This is yet another in a long line of unintended consequences of Washington’s poorly executed foreign policies.

  4. Mary E says

    In any other situation, the federal government would NOT buy oil to top off its oil reserves, but this is a case of dire necessity: trump needs to do this to keep the economy looking great so he can retain the presidency in the November 2020 election.
    And the $billions that is going into Wall St is for the same purpose…and it is so totally irresponsible (to say the very least) and cruel since that money could be used to purchase medical equipment needed for the war on Covid 19! But the US has an insane
    and ignorant person leading – and the possibly sane Republicans and the corporations (via Wall ST), in cahoots with the White House, are running the country into a bottomless
    pit that it will not ever recover from! We can only hope that this scenario does not come to fruition before the election in November when this Shi- Brain will be ousted onto the street, tarred and feathered and ridden out of town on a rail.

  5. IM DeRose says

    Wouldn’t it be easier to nuke tf out of Moscow and Riyadh, and just take their oil?

    1. Jesus says

      Is that part of the Hollywood script?

    2. Mary E says


    3. 14th Troll says

      Dying ain’t “easy” boy!

    4. RedBaron9495 says

      Dumb ignorant American!
      Did you ever consider that Russians have slightly more nukes than the USA….and also far more modern too!

      1. Greenstone says

        He’s a bottle fed CNN sook dumbed down

    5. Greenstone says

      Is that on your PlayStation kid ?

    6. Canosin says

      hey big mouth….don’t care for Riyadh….but concerning Moscow…..hmmm….you wanna try this out? you and any Russian guy ….guess who is gonna take the beating…..(spoiler alert: it’s not the Russian)

  6. Jesus says

    The result of US idiotic foreign policy coupled with sanctions has led to a contraction of the US economy and now the stock market collapse.
    No blame being passed around, just have the Fed print money to bail out industries hurt as a result of the economic war, eventually all this money printing will lead to hyperinflation and the demise of the petrodollar.

    1. Mary E says

      The Fed will run out of paper and/or ink before the total collapse of its ill conceived (not to mention unworkable) plan.

      1. Jesus says

        They are creating digital currency, at one point their bubble asset portfolio will not measure up with supposed assets of securities they are buying, imploding itself.

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