U.S. to Buy 6 Million Barrels of Oil for SPR, Building on 5 Million Bought Last Month
(Reuters) — The U.S. is seeking to buy another 6 million barrels of oil from energy companies to help replenish the Strategic Petroleum Reserve (SPR), the Department of Energy said on Monday.
The solicitation of oil for the SPR is the first for delivery into the facility's Bryan Mound, Texas site since it underwent maintenance work and repairs, the department said.
RELATED: U.S. Buys Nearly 5 Million Barrels of Oil for Emergency Stockpile
It is seeking 2 million barrels of the oil a month to be delivered to Bryan Mound from January to March next year.
The DOE "will continue to evaluate options to refill the SPR while securing a good deal for taxpayers, taking into account planned exchange returns and market developments," said Charisma Troiano, a department spokesperson.
West Texas Intermediate crude prices CLc1 rose on Monday to $78.72 a barrel on intensifying Middle East supply risks and fading fears of a U.S. recession, but they were still just under the $79 to $79.99 level at which the U.S. wants to buy back oil for the SPR.
The department is slowly replenishing the SPR after it sold 180 million barrels in 2022 following Russia's invasion of Ukraine in an effort to calm fuel prices that had risen. It was the biggest sale ever from the reserve.
The U.S. has so far bought back about 43 million barrels from oil companies and worked with Congress to cancel sales from the SPR that had been required by law to help pay for government programs.
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