Brent hits $76 as Trump vows quick refill of US oil reserves

Crude oil prices edged higher today, with Brent Crude and West Texas Intermediate (WTI) rising nearly 0.5 percent to $76.45 and $72.60, respectively, as President Donald Trump’s pledge to swiftly refill the Strategic Petroleum Reserve (SPR) lifted market sentiment.

Speaking at an investment conference in Miami, Trump emphasised the importance of restoring the reserve to safeguard US energy security.

“We’ll fill it up fast, but it’s at the lowest level. When we made the transition, it was at the lowest level in history, ever recorded,” Trump said, criticising the Biden administration for draining the reserve.

“They put it all out because they thought they could keep gasoline prices down a little bit, just go past the election, and after that, they didn’t care,” he added, arguing that the release failed to prevent price hikes.

The Biden administration released over 180 million barrels from the SPR beginning in 2021 to combat soaring gasoline prices. According to the US Department of Treasury, these releases, alongside international coordination, helped lower gasoline prices by up to 40 cents per gallon in 2022.

However, the SPR now holds about 395 million barrels of crude, nearly 250 million barrels less than at the start of Biden’s term. The reserve’s total capacity is 714 million barrels.

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Trump also pledged tax cuts for oil and gas producers, promising to work with Republicans in Congress to ease financial burdens on households and companies.

His proposal includes allowing oil producers to expense 100 percent of capital spending, a move aimed at stimulating domestic energy investment.

Despite the rhetoric, oil drillers have indicated they have no immediate plans to ramp up production further unless global prices rise enough to make it profitable.

Still, Trump’s commitment to boost the SPR and supporting the energy sector appeared to give oil markets a lift, with prices ticking upward in early trading.