President Trump on Tuesday said that the investment from India’s Reliance Industries will help America First Refining open its first oil refinery in the area in 50 years.
- Trump said that the country’s “America First Agenda,” alongside the administration’s practice for streamlining permits and lowering taxes have attracted foreign investment into the nation.
- The president also said that the investment will help global exports, and improve employment as well as growth in the region.
- The announcement comes amid volatility in oil prices across the globe as the war in the Middle East has constrained supply amid a blockage of the Strait of Hormuz.
U.S. President Donald Trump on Tuesday announced that private company American Refining Group is opening a refinery in Brownsville, Texas, in a deal worth $300 billion.
Trump said in a post on Truth Social that the refinery is in partnership with India’s Reliance Industries and that it will be the first new one in the area in 50 years.
“America is returning to REAL ENERGY DOMINANCE! Today I am proud to announce that America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas,” Trump said.
“THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY, A MASSIVE WIN for American Workers, Energy, and the GREAT People of South Texas!” he added.
The announcement comes amid volatility in oil prices across the globe as the war in the Middle East has constrained supply amid a blockage of the Strait of Hormuz.
The Deal Flex
Trump said that the country’s “America First Agenda,” alongside the administration’s practice for streamlining permits and lowering taxes have attracted foreign investment into the nation.
“A new Refinery at the Port of Brownsville, will fuel U.S. Markets, strengthen our National Security, boost American Energy production, deliver Billions of Dollars in Economic impact, and will be THE CLEANEST REFINERY IN THE WORLD,” he said.
The president also said that the investment will help global exports, and improve employment as well as growth in the region.
“It will power Global Exports, and bring THOUSANDS of long overdue Jobs and Growth to a Region that deserves it. This is what AMERICAN ENERGY DOMINANCE looks like. AMERICA FIRST, ALWAYS!” Trump said.
Oil Crunch
Meanwhile, oil prices across the globe have been on a wild swing due to the geopolitical uncertainty associated with the U.S. and Israel’s war against Iran that is on its 11th day. A blockage of the important Strait of Hormuz, which is a route for about 20% of the daily global oil supply, has disrupted energy supply chains.
On Tuesday, WTI crude oil toppled over 16% to be below $77 per barrel amid a post that the U.S. Navy had escorted an oil tanker through the Strait. Oil prices subsequently climbed higher after the post was taken down and the White House clarified that it had not.
At the time of writing, WTI crude was trading around $86.39 per barrel, while ICE Brent crude was trading around $91.25 per barrel.
Meanwhile, U.S. equities were in green in Tuesday’s after-hours trading. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up by 0.15%, the Invesco QQQ Trust ETF (QQQ) climbed up 0.14%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.06%.
The United States Oil Fund (USO), which tracks WTI crude oil, was down 0.14% at the time of writing.
Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory, while that of USO was in the ‘extremely bullish’ territory.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
