US Department of Energy secures purchase of 4.65M barrels of strategic oil reserve
Date
7/30/2024 5:09:34 AM
(MENAFN) On Monday, the U.S. Department of energy announced that it has entered into a contract to acquire 4.65 million barrels of crude oil for the Strategic petroleum Reserve (SPR), with delivery scheduled for the Bayou Choctaw site in Louisiana over the last quarter of the year. Of this total, Exxon Mobil is set to supply 3.9 million barrels, while the remaining quantity will be provided by Macquarie Commodities Trading. The average purchase price for this oil is approximately USD76.92 per barrel, according to the department.
This procurement is part of a broader effort to replenish the U.S. emergency oil stockpile, which experienced a historic drawdown of 180 million barrels in 2022. The drawdown was implemented in an attempt to mitigate the surging gasoline prices, which had exceeded USD5 per gallon following the onset of the Russia-Ukraine war. However, this action significantly depleted the SPR, bringing it to its lowest level in four decades.
The Department of Energy highlighted that it has successfully repurchased a total of 43.25 million barrels at an average price of around USD77 per barrel, following the sale of oil at approximately USD95 per barrel in 2022. The department characterized these transactions as advantageous for taxpayers, reflecting a strategic approach to managing the nation's emergency oil reserves and stabilizing market prices.
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