President Trump said Wednesday that oil reserves could have run out in four weeks if the Strait of Hormuz were not opened.
“We run out of reserves at about four weeks,” Trump said in France while at the Group of Seven summit, discussing the recent memorandum of understanding with Iran. “You know, there are reserves all over the world, and we would really run out, and there’ll be a time when you wouldn’t be able to get it.”
He said it would be “bedlam” if the oil ran out.
“What this does is it allows the ships to go,” he said of the Iran deal. “If we keep bombing, those ships won’t be going.”
It’s not entirely clear whether Trump was referring to U.S. or global oil inventories. The White House declined to elaborate, referring The Hill back to Trump’s original remarks.
In recent weeks, the International Energy Agency (IEA), an organization of oil consuming countries, has warned of declining oil reserves.
IEA head Fatih Birol said last month that oil reserve releases were helping to keep up the market supply, but he warned the reserves “are not endless.”
He indicated at the time that because of the war and closure of the Strait of Hormuz, only a few weeks of commercial inventories were remaining.
The IEA also warned in May that oil demand would exceed supply this year.
At the start of the war, both the U.S. and other IEA countries announced they would release oil from their strategic reserves, putting 400 million additional barrels onto the market.
As part of the announcement, the Trump administration said it would release 172 million barrels from its strategic reserve. The releases were set to occur over a 120-day period.
At the time, the U.S. strategic reserve comprised about 415 million barrels of oil, meaning the release of an additional 172 million would eventually bring the reserve down to about 243 million unless barrels were added or subtracted for other reasons.
Hellbound and Down 