The US Department of Energy said it will buy three million barrels of crude oil for the Strategic Petroleum Reserve for August delivery and has requested bids by May 31.
“This announcement advances the president’s (Joe Biden’s) strategy to replenish resources following his historic graduation from the strategic reserve to address the significant global supply disruption caused by the war in Ukraine and provide a wartime bridge to increase domestic production,” the ministry said in a statement. . .
And she reaffirmed that the Department of Energy is “committed to implementing a strategic oil renewal strategy that provides the best deal for taxpayers to buy back crude oil below the average $95/bbl it was sold at in 2022, while strengthening the energy security”, stressing that it intends to buy more oil later this year.
Last year, the Biden administration made its biggest sale of 180 million barrels of stocks as part of a strategy to stabilize oil markets and fight high gasoline prices, reducing US strategic stockpiles to about 372 million barrels, the lowest level since 1983. . Less than enough to cover 20 days at current consumption rates.
The administration has said it will start buying oil back into reserves when prices stabilize at or below $67-$72 a barrel, well below the level at which it sold oil, so that taxpayers can reap some benefit.
Source: RT
