Global Stock
U.S. congress Vote this week To prevent China from buying oil from the Strategic Petroleum Reserve, which is at its lowest level in 40 years after the Biden administration withdrew 180 million barrels last year.
Legislation – Amendment to National Defense Authorization must pass Act – It is prohibited to sell US oil to any company controlled by the Chinese Communist Party, or to Russia, Iran, North Korea, or any country sanctioned by the United States.
The amendment is similar to a bill that passed the Republican-led House of Representatives in January, meaning the bill’s language has a strong chance of becoming law.
Less than two million barrels of 180m pulled from the Strategic Petroleum Reserve were purchased last year by a Chinese company; US companies sold 83 million barrels of crude to China last year, which will not be affected by the bill.
The move comes amid concerns that the Biden administration did not act quickly enough to refill the reserves, raising national security concerns.
Energy Secretary Jennifer Granholm acknowledged earlier this month that the administration may not be able to refill the Strategic Petroleum Reserve during President Biden’s current term.
ETFs: (NYSEARCA: USE), (UCO), (SCO), (DBO), (USL), (DRIP), (GUSH), (USOI), (NRGU)
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