US President Joe Biden has announced that he will release one million barrels of oil per day from the US Strategic Petroleum Reserve over the next six months as part of his administration’s efforts to bring down gasoline prices.March 31, 2022, White House in Washington.
Kevin Lamarck | Reuters
The U.S. Department of Energy announced Friday it will begin buying back oil for its Strategic Petroleum Reserve (SPR).
A senior official told reporters the ministry plans to buy up to 3 million barrels for delivery in February.
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President Joe Biden announced the sale of 180 million properties in late March to combat high gasoline prices that boosted inflation after Russia, the world’s largest exporter of fossil fuels, invaded Ukraine in February. announced.
SPR sales have shrunk to about 380 million barrels, the lowest since 1984, raising concerns about energy security.
“We will announce an invitation to purchase 3 million barrels of oil next February 2023,” the official said.
Contracts will be awarded to energy companies by January 13th.
“This approach would lock in prices before companies submit bids,” the official added.
To ease supply shortages at refineries after last week’s oil spill, keystone crude oil pipelinethe Department of Energy will also carry out a replacement of about 2 million barrels from SPR, which the companies will have to send back at a later date.
“We could do that at the same time as the buyback of 3 million barrels,” the official said.
The White House announced in October that it would buy back crude for the SPR if the price was below about $67 to $72 a barrel.
“We’re going to try to be agile and flexible here,” the official said, adding that he liked the current price for considering a buyback.
“It would be very helpful to issue this notice now to see what the market offers in terms of interest and at what price levels it offers,” the official said.
The Department of Energy said buying back oil at about current prices would “ensure a good deal for American taxpayers and save energy by buying back at a price lower than the average price of $96 a barrel at which oil was sold.” It is an opportunity to strengthen security.”
