(MENAFN) The US Department of Energy (DOE) has announced the awarding of supply contracts to five companies for the delivery of 3.1 million barrels of crude oil to the Strategic Petroleum Reserve (SPR) in August. The contracts were granted at an average price of USD73 per barrel, as part of the DOE's plan to refill the emergency stockpile after its record release following Russia's invasion of Ukraine last year.

The DOE's purchase plan, unveiled in May, aimed to replenish the SPR in order to ensure a robust strategic oil reserve. With an average cost of USD73 per barrel, the purchase of 3 million barrels represents a lower price compared to the average sale price of SPR crude in 2022, which stood at approximately USD95 per barrel. The favorable pricing of the latest acquisition secures a beneficial deal for taxpayers, according to the DOE's press release.

Among the companies awarded contracts are Atlantic Trading and Marketing, Exxon Mobil Corp., Gunvor USA, Macquarie Commodities Trading, and Sunoco Partners Marketing & Terminals. These companies will play a crucial role in fulfilling the supply agreements and delivering the purchased crude oil to the Big Hill SPR site in Texas.

The administration's decision to repurchase oil into the reserve was guided by its commitment to execute the transactions when prices were at or below USD72 per barrel. By capitalizing on the current market conditions, the DOE aims to bolster the SPR's strategic capabilities while ensuring cost-effectiveness.

The Strategic Petroleum Reserve serves as a critical national asset for the United States, enabling the country to respond swiftly to energy disruptions and emergencies. With the successful awarding of contracts to these five companies, the DOE takes a significant step towards replenishing the reserve, thereby strengthening the nation's energy security.

This move by the US Department of Energy underscores the importance of maintaining a robust strategic oil reserve, particularly in the face of global geopolitical uncertainties and disruptions in the energy market. By securing crude oil supply at favorable prices, the government ensures the availability of essential resources to address any future contingencies and safeguard the nation's energy interests.

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