financetom
Business
financetom
/
Business
/
US seeks 6 million barrels of oil for Strategic Petroleum Reserve
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US seeks 6 million barrels of oil for Strategic Petroleum Reserve
Jun 7, 2024 12:23 PM

WASHINGTON (Reuters) - The U.S. issued two solicitations on Friday to buy a total of 6 million barrels of crude oil for the Strategic Petroleum Reserve as the administration of President Joe Biden replenishes the stockpile following a historic sale in 2022.

The Department of Energy said the oil is for delivery to the SPR's Bayou Choctaw site in Louisiana from September through December.

The department this year moved to a direct purchase strategy of oil for the reserve instead of basing the purchasing price on an index of prices. It said that move and the completion of maintenance at Bayou Choctaw has helped it buy 38.6 million barrels of oil for at an average of $77 per barrel.

The Biden administration in 2022 announced a record sale of 180 million barrels from the SPR after Russia's invasion of Ukraine. The move was an effort to control gasoline prices that spiked to more than $5.00 a gallon after the invasion. But it also pushed down the level of the SPR to the lowest in 40 years.

Energy Secretary Jennifer Granholm said in an exclusive interview on Tuesday that the department could speed replenishment of the SPR this year, beyond a roughly 3 million barrel per month pace.

"It could pick up more than that," Granholm told Reuters in Washington. She said two of the SPR's four sites on the coasts of Texas and Louisiana have been in maintenance, slowing purchases.

"All four sites will be back up by the end of the year, so one could imagine that pace would pick up, depending on the market," Granholm said.

The DOE wants to buy back oil for the reserve at about $79 a barrel. West Texas Intermediate crude futures were well below that at about $75 on Friday and was set for a third straight weekly loss on concerns about demand.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
India's Adani to pump further $1.2 bln into Kerala deep-sea port
India's Adani to pump further $1.2 bln into Kerala deep-sea port
Nov 28, 2024
Nov 28 (Reuters) - Adani Group's ports business will invest an extra $1.2 billion in a long-delayed deep-sea facility in India's southern state of Kerala, its local government said on Thursday. The deal comes after Adani Group's 10 listed companies saw as much as $34 billion wiped off their total market value in the wake of Chairman Gautam Adani's indictment...
Members of K-pop group NewJeans say they are leaving agency after dispute
Members of K-pop group NewJeans say they are leaving agency after dispute
Nov 28, 2024
By Ju-min Park SEOUL, Nov 28 (Reuters) - Members of NewJeans, one of the most popular K-pop groups, said on Thursday that they were leaving their agency ADOR, a subsidiary of powerhouse label HYBE . ADOR said however the agreement between it and the band members remains in full effect. Therefore, we respectfully request that the group continue its collaboration...
-- Banxa Holdings Brief: Up Near 4% As Reports Strong September Quarter
-- Banxa Holdings Brief: Up Near 4% As Reports Strong September Quarter
Nov 28, 2024
10:15 AM EST, 11/28/2024 (MT Newswires) -- Price: 0.79, Change: +0.03, Percent Change: +3.95 ...
Mexican president says did not discuss tariffs in call with Trump
Mexican president says did not discuss tariffs in call with Trump
Nov 28, 2024
MEXICO CITY (Reuters) - Mexico's President Claudia Sheinbaum said on Thursday she did not specifically discuss tariffs in a call with U.S. President-elect Donald Trump a day earlier, after Trump threatened a 25% import tax that appears to contravene a free trade pact. Sheinbaum told a morning press conference the two discussed the causes for which Trump had threatened tariffs,...
Copyright 2023-2025 - www.financetom.com All Rights Reserved