DOE finalises purchase for strategic reserve

The US Department of Energy (DOE) has finalised a contract to purchase 4.65 million barrels of crude oil for the Strategic Petroleum Reserve (SPR) at an average price of $76.92 per barrel, with delivery scheduled for late 2024.

Exxon Mobil will supply 3.9 million barrels, and Macquarie Commodities Trading US LLC will provide the rest.

This purchase follows a record release of 180 million barrels in 2022, aimed at controlling gasoline prices amid Russia’s conflict with Ukraine, which reduced the SPR to a 40-year low. The DOE has repurchased 43.25 million barrels at an average of $77 per barrel and canceled a planned sale of 140 million barrels from the reserve.

Energy Secretary Jennifer Granholm stated that the DOE has effectively replenished the 180 million barrels released, ensuring value for taxpayers.

The DOE plans to continue purchasing oil next year with $1.2 billion remaining, enough for about 15 million barrels at current prices. The SPR currently holds approximately 374.4 million barrels.

Attribution: Reuters