President Donald Trump's proposal to sell half of the U.S. Strategic Petroleum Reserves (SPR) will likely have little impact on OPEC's efforts to reduce a global oil glut, Goldman Sachs said on Tuesday.
The White House budget, delivered to Congress on Tuesday, aims to start selling SPR oil in fiscal 2018, which begins on Oct. 1. Under the proposal, the sales would generate $500 million in the first year and gradually rise over the following years.
Goldman Sachs said such sales would only average around 110,000 barrels per day annually through 2027, 66,000 bpd between 2018-2020 and just 25,000 bpd this year.
"This is negligible relative to both the size of the OPEC cuts of 1.7 million bpd and the global oil market of 98 million bpd," the bank said in a note.