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Australia reaches breakthrough deal to buy US emergency oil supplies

By March 8, 2020May 23rd, 2020No Comments

March 8, 2020 – London and Washington: The Morrison government has struck a landmark deal to tap into the US government’s tightly-guarded emergency fuel reserves, a move that will help lower the risk of Australia plunging into an economic and national security crisis.

The agreement, to be signed by Energy Minister Angus Taylor in Washington on Monday (Tuesday AEDT), will help shore up the dangerously low supplies in Australia that have left consumers vulnerable to price spikes and rationing in the event of a sudden supply disruption.

The Sydney Morning Herald and The Age revealed last year that the government was in talks with the Trump administration to buy millions of barrels of oil from the US Strategic Petroleum Reserve.

Australia imports 90 per cent of its liquid fuels but only has enough in storage to last 54 days – well below the 90 days it is obliged to stockpile under an agreement with the International Energy Agency (IEA).

READ MORE: https://www.smh.com.au/politics/federal/australia-reaches-breakthrough-deal-to-buy-us-emergency-oil-supplies-20200307-p547t1.html