12/8/2023, 4:33 PM (Source: TeleTrader)
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US seeks to add 3 million barrels to SPR in March

The United States Department of Energy (DoE) issued a solicitation on Friday for up to 3 million barrels of oil for delivery to the Strategic Petroleum Reserve (SPR) in March 2024.

According to the Department of Energy, it purchased nearly 9 million barrels for SPR replenishment at an average cost of around $75 per barrel, in contrast to the average selling price of SPR crude in 2022, which went to $95 per barrel.

Namely, today's announcement aligns with President Joe Biden's pledge to "safeguard" and "replenish" vital energy security assets. This comes in conjunction with Washington's decision for a "historic release" from the SPR to mitigate "significant global supply disruptions" resulting from Russia's war on Ukraine and to ensure that the domestic market remains "well supplied."

Baha Breaking News (BBN) / AB