President Donald Trump announced Sunday that he has authorized the release of oil from U.S. petroleum reserves and for expedited approvals for pipeline projects in response to the Iranian-backed rebel attack on Saudi petroleum plants.
“Based on the attack on Saudi Arabia, which may have an impact on oil prices, I have authorized the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount sufficient to keep the markets well-supplied,” the president tweeted. “I have also informed all appropriate agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other States.”
Saudi Arabia has also announced releases from its petroleum reserves to alleviate the impact that an attack by Houthi rebels, backed by Iran, had on the world’s oil supply.
The attack caused Saudi Arabia’s Aramco to shutter infrastructure that handles 5% of the global oil supply.
It is unclear what Iran or the rebels hoped to achieve with the attack as it will force world leaders to answer this threat to international energy reserves with greater sanctions or direct military response.
The Houthis have threatened even more attacks which will increasingly threaten petroleum supplies to China, the European Union and other nations still dependent on the region for energy. It will also have the effect of increasing demand for secure and dependable oil production available from the United States – the world’s #1 energy producer, and a huge exporter at this time.
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