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 >
Santander Brasil's net profit rises 34% in Q3
Santander Brasil's net profit rises 34% in Q3
Nov 3, 2024
SAO PAULO, Oct 29 (Reuters) - Santander Brasil's third-quarter net profit jumped 34.3% on a yearly basis to 3.66 billion reais ($640.8 million), the bank said on Tuesday, ahead of market forecasts. Analysts polled by LSEG had expected the bottom line to come in at 3.50 billion reais. ($1 = 5.7113 reais) ...
Trump Media (DJT) Rises 11% In Tuesday Pre-Market: What's Going On?
Trump Media (DJT) Rises 11% In Tuesday Pre-Market: What's Going On?
Nov 3, 2024
Trump Media & Technology Group Corp ( DJT ) experienced a notable surge in its stock price, rising by 10.24% during pre-market trading on Tuesday. This uptick follows a campaign rally by Donald Trump in New York City. The stock had previously closed 21.59% higher at $47.36 on Monday, as per Benzinga Pro. What Happened: The rally was held at...
Cruise operators reap benefits of their own private islands
Cruise operators reap benefits of their own private islands
Nov 3, 2024
NEW YORK (Reuters) - Major cruise operators are steering their ships - and millions of dollars in investments - into their own private destinations packed with excursions, beaches, bars and restaurants.  The phenomenon appears to have started with Royal Caribbean Group, which in 2019 opened Perfect Day at CocoCay, an amusement park-like private destination in The Bahamas that has caught...
ING Comments on Euro, Sterling, Other European Currencies
ING Comments on Euro, Sterling, Other European Currencies
Nov 3, 2024
06:04 AM EDT, 10/29/2024 (MT Newswires) -- When liquidity becomes a discriminating factor in foreign exchange, the euro can find some support in the crosses, including through the unwinding in Nordics foreign exchange positions that are generally traded vis-as-vis the euro, according to ING. The bank remains on the lookout for any sharp underperformance of Norway's krone, which is often...
Copyright 2023-2026 - www.financetom.com All Rights Reserved