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Market Chatter: US Studying Oil Drilling Under Military Bases to Refill Reserve

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-- The Trump administration is studying the possibility of using oil beneath US military bases and other Department of War sites to help replenish the Strategic Petroleum Reserve, Bloomberg reported Wednesday, citing a person familiar with the matter.

No decision has been made on the initiative, the person told Bloomberg.

The move comes as the administration looks for new ways to refill the emergency oil reserve following additional drawdowns during the Iran war.

The reserve, created after the Arab oil embargo in the 1970s, is set to fall to its lowest level since 1982.

Bloomberg said drilling under military bases would likely have no immediate impact on fuel prices, but could allow the government to directly own produced oil instead of purchasing crude from private producers to refill the reserve.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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