US to buy 3.3 million bbls of crude for SPR

The US Department of Energy (DOE) will purchase up to 3.3 million bbls of crude oil for deliveries in October to replenish its Strategic Petroleum Reserves (SPRs).

PHOTO: Oil pumpjacks and the US flag. Getty Images

The US energy department intends to buy another 3.3 million bbls of crude for $79/bbl or below. This is the second purchase for the SPR this year. In February, it purchased about 3 million bbls of crude oil for deliveries in August.

The energy department has so far purchased a total of 32.3 million bbls of crude oil for the SPR at an average price of $76.98/bbl.

The DOE further aims to avoid the unnecessary sale of SPRs. It has already cancelled the 140 million bbls of congressionally mandated SPR sales scheduled for 2024 through 2027.

The SPRs stood at 366 million bbls as of 26 April, largely unchanged from a year ago, according to the US Energy Information Administration (EIA). These reserves remain much lower compared to peak levels of 555 million bbls seen in April 2022.

The crude oil will be stored at the Big Hill storage facility in Texas.

By Aparupa Mazumder 

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