US to buy 3 million bbls of crude for SPR

The US Department of Energy (DOE) is purchasing about 3 million bbls of crude oil for deliveries in August to replenish its Strategic Petroleum Reserves (SPRs).

PHOTO: A silhouette of an oil pump jack with the US flag in the background. Getty Images

The US DOE has purchased a total of 23.08 million bbls of crude oil so far for the SPR at an average price of $76.34/bbl.

The energy department intends to buy another 3 million bbls of crude at a price of $79/bbl or below. It will be a “good deal” for US taxpayers and also significantly lower than the $95/bbl average the department received from selling some of its reserves in 2022, the DOE stated.

The DOE has already cancelled the 140 million bbls of congressionally mandated SPR sales scheduled for 2024 through 2027. “These cancellations have resulted in significant progress toward replenishment,” it said. The department aims to avoid the unnecessary sale of SPRs.

The SPRs stood at 359 million bbls as of 16 February, a decline of about 12 million bbls year-on-year (371 million bbls), according to the US Energy Information Administration (EIA). These reserves remain much lower compared to peak levels of 592 million bbls seen in February 2022, just before the Russian invasion of Ukraine.

By Aparupa Mazumder 

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