Arya News - President Donald Trump has declared petroleum production, refining and related activities essential to US national defense, invoking powers under the Cold War-era Defense Production Act.
CNBC reported that the move could allow the administration to provide financial incentives for oil projects, pipelines and fuel storage. The presidential memo cites “constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations.”The decision comes as crude oil and diesel prices remain elevated following the US and Israeli attacks on Iran, while Ukrainian strikes on Russian refineries have added pressure to fuel supplies.The administration has also turned to Russian diesel. Earlier in October, Trump announced an agreement with Russian President Vladimir Putin under which Russia would release fuel to the US and global markets. Trump said the planned volumes included more than 300,000 metric tons initially, another 500,000 tons in November and 1 million tons thereafter, while the US temporarily eased sanctions restrictions to facilitate deliveries.