US oil producers begin storing crude in SPR

US oil producers facing storage crisis amid the coronavirus-induced demand destruction have started making deliveries to the nation's emergency stockpile or the strategic petroleum reserve (SPR). 

Producers have so far delivered 1.1 million barrels to the SPR this month. "The Energy Department has finalized contracts announced earlier this month for companies to rent about 23 million barrels of capacity in the SPR, according to an official, as noted by Bloomberg News. 

The transfer of inventories to the SPR is the part of the Trump administration's to help drain the nation’s growing glut of crude as commercial storage quickly fills up. Note that most of the oil is scheduled to be delivered in May and June. As a result, the weekly inventory data may show drawdowns in May.