Oil prices fell on Tuesday, weighed down by US President Donald Trump's plan to sell off half the country's huge oil stockpile to trim the national debt, threatening a future oil glut, Reuters reported.
While Brent crude ended a run of four days of consecutive gains to trade 36 cents lower at $53.51 per barrel at 8:30 GMT, US light crude was down 33 cents at $50.80.
The White House plan to sell off half of the nation's 688 million-barrel oil stockpile from 2018 to 2027 aims to raise $16.5 billion and help balance the budget, Reuters noted.
A release of US strategic reserves could jolt an already imbalanced oil market and undermine attempts by The Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, to end a persistent surplus.
Trump’s first complete budget proposal, released in part on Monday, would raise $500 million in fiscal year 2018 by draining the national petroleum reserve, according to Bloomberg.
