FINWIRES · TerminalLIVE
FINWIRES

Trump Administration Releases Reserve Oil as Prices Soar

By

The US Department of Energy said Monday it awarded contracts for the exchange of about 53.3 million barrels of crude oil from its Strategic Petroleum Reserve (SPR) as part of the country's effort to stabilize global oil supplies.

The contracts were awarded to companies including Marathon Petroleum for 12.4 million barrels, Trafigura Trading for 12.98 million barrels, and ExxonMobil for 11.4 million barrels, among others.

"With today's announcement of contract awards, we are advancing the President's commitment to carrying out this historic emergency exchange," DOE Assistant Secretary for the Hydrocarbons and Geothermal Energy Office Kyle Haustveit said in a statement.

The department said the exchange would secure an approximately 28% return premium, equivalent to 15.1 million barrels, and follows earlier exchange actions that already awarded around 80 million barrels from SPR sites.

Related Articles

Equities

IFM Warns It May Scrap A$3 Billion Sustainable Aviation Fuel Project Without Policy Support

IFM Investors may abandon a proposed A$3 billion ($2.2 billion) sustainable aviation fuel project in Australia unless the government introduces rules requiring airlines to use the cleaner-burning fuel, Bloomberg reported Monday.Danny Elia, IFM's global head of infrastructure asset management, said the company needs "demand-side" policy support to proceed with plans to produce sustainable aviation fuel from local agricultural feedstock."Within the next six or so months, we are really going to need to see some finality around the policy framework," Elia said in an interview with Bloomberg. "We actually need a demand-side mandate."Sustainable aviation fuel, or SAF, is viewed by airlines as a key tool to reduce aircraft emissions, though production remains limited globally due in part to the lack of supportive policies.

Equities

Trump's Proposed Gas Tax Holiday Would Cost $3.5 Billion a Month

President Donald Trump's proposal to suspend the federal gasoline tax would cost the U.S. government about $3.5 billion a month in lost tax revenue, Bloomberg reported Monday, citing analysts.Trump said Monday he would seek to pause the federal 18.4 cents-a-gallon gasoline tax "until it's appropriate," though the proposal would require congressional approval.Republican Senator Josh Hawley said he would introduce legislation to suspend federal gasoline and diesel taxes for 90 days, with the option for Trump to extend the measure.According to a March estimate from the Committee for a Responsible Federal Budget cited by Bloomberg, some of the lost revenue could be offset by higher economic activity, though additional debt servicing costs would outweigh those gains.A separate analysis from the Bipartisan Policy Center estimated the government would lose about $2.5 billion a month in gasoline tax revenue and roughly $900 million monthly from diesel taxes.

Equities

Ovintiv Q1 Earnings Rise

Ovintiv Inc (OVV) reported Monday Q1 adjusted earnings of $537 million, up from $370 million a year earlier.Revenue for the quarter ended March 31 was not immediately available.Analysts surveyed by FactSet expected $2.38 billion.

$OVV