U.S. Department of Energy buys additional oil to replenish strategic reserve
Date
8/13/2024 5:06:25 AM
(MENAFN) The U.S. Department of energy has announced plans to acquire an additional six million barrels of oil from energy companies to address a shortfall in the Strategic petroleum Reserve (SPR). This move marks the first delivery to the Bryan Mound facility in Texas since it completed maintenance and repair work. The department aims to deliver two million barrels of oil per month to Bryan Mound from January through March of the upcoming year.
Charisma Troiano, a spokesperson for the Department of Energy, emphasized that the department will continue to explore options for replenishing the strategic reserve while ensuring favorable terms for taxpayers. This purchase comes as West Texas Intermediate (WTI) crude prices have risen to USD78.72 per barrel, driven by increased risks to Middle Eastern oil supplies and a reduction in U.S. recession fears. However, prices remain slightly below the USD79 to USD79.99 per barrel range that the U.S. is targeting for buying oil to restock the SPR.
The department's strategy includes a gradual replenishment of the reserve following a historic sale of 180 million barrels in 2022, the largest ever from the SPR, which was undertaken in response to the geopolitical turmoil from Russia’s invasion of Ukraine. To date, the U.S. has purchased approximately 43 million barrels from oil companies as part of this replenishment effort.
MENAFN13082024000045015682ID1108548049
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.