The United States is considering a plan to exchange heavy Venezuelan oil for American medium crude to replenish its emergency reserve. Reuters reported this, citing its own sources, writes UNN.
Details
The Trump administration plans to transport Venezuelan oil to tanks at the Louisiana Offshore Oil Port, from where it can be sent to refineries.
In exchange for Venezuelan oil, companies will provide American medium sour crude, which can be immediately sent to strategic petroleum reserves.
In the past, the government has used exchanges to release and acquire oil.
Typically, in an exchange, a refiner borrows oil from strategic petroleum reserves for a short period, for example, due to hurricanes or temporary supply disruptions, and then fully replaces it, adding a premium in the form of an additional amount of oil.
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