US Plans to Buy Up to 4.5 Million Barrels of Oil for Strategic Petroleum Reserve
By Jace Dela Cruz
Jul 11, 2024 11:52 AM EDT
Jul 11, 2024 11:52 AM EDT
The US Energy Department announced Wednesday its intention to purchase up to 4.5 million barrels of oil to replenish the Strategic Petroleum Reserve (SPR).
According to Reuters, this move follows a major sale of 180 million barrels from the SPR in 2022, directed by President Joe Biden in response to Russia's invasion of Ukraine.
The solicitation aims to refill the SPR's Bayou Choctaw site in Louisiana, with deliveries scheduled between October and December. Oil companies must submit bids by July 18.
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(Photo : David McNew/Getty Images)
Despite the current higher oil prices, the Energy Department maintains a target price of $79 per barrel for these purchases, significantly lower than the $82.10 per barrel price of West Texas Intermediate benchmark oil.
The department has already repurchased approximately 38.6 million barrels of oil following the 2022 sale. Additionally, it has collaborated with Congress to cancel further sales from the reserve that both political parties had authorized.
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