© Reuters. Department of Energy officers lead reporters on a tour of the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson
WASHINGTON (Reuters) – The U.S. has purchased 1.2 million barrels of oil to assist replenish the Strategic Petroleum Reserve after promoting the most important quantity ever from the stockpile final yr, the U.S. Energy Department stated on Monday.
The division stated it purchased the oil at a median value of $77.57 a barrel from two firms after 18 bids had been submitted.
The administration of President Joe Biden final yr performed the most important ever sale from the SPR of 180 million barrels, a part of a method to stabilize hovering oil markets and fight excessive pump costs within the aftermath of Russia’s invasion of Ukraine. It has now purchased again about 6 million barrels.
As oil costs have risen on manufacturing cutbacks by Saudi Arabia and Russia, it has been tough for the administration to purchase again oil for the reserve. Last month it raised the value at which it hopes to purchase again oil to $79 or much less a barrel, up from an earlier value vary of about $68 to $72.
Last month the Energy Department stated it hopes to purchase 3 million barrels for December supply and one other 3 million for January on the increased value. It stated it expects to situation further oil buy solicitations for the reserve on a month-to-month foundation by means of at the least May 2024.
“President (Joe) Biden and the Energy Department remain committed to refilling the SPR at fair prices, safeguarding this critical energy security asset while getting a good deal for American taxpayers,” a division spokesperson stated.
The division has stated oil in final yr’s emergency gross sales offered for a median of $95 per barrel.