U.S. Buys Nearly 5 Million Barrels of Oil for Emergency Stockpile
(Reuters) — The U.S. Department of Energy said on Monday it had finalized a contract to purchase 4.65 million barrels of crude oil for the Strategic Petroleum Reserve, for delivery to the Bayou Choctaw site in Louisiana during the last three months of the year.
ExxonMobil will supply 3.9 million barrels of the contract, while Macquarie Commodities Trading US LLC will supply the rest, the DOE said. The average purchase price for the oil is about $76.92 per barrel, the DOE said.
The purchase is the latest in a string of contracts intended to refill the nation’s emergency oil stockpile following a record release of 180 million barrels in 2022. That sale was an effort to control gasoline prices that spiked to more than $5.00 a gallon after Russia’s invasion of Ukraine. But it also reduced the SPR to the lowest in 40 years.
The DOE said it has since repurchased a total of 43.25 million barrels at an average price of around $77 a barrel, after having sold the oil at around $95 a barrel during the 2022 release - reflecting what it called a "good deal for taxpayers."
U.S. crude futures CLc1 were trading around $76 a barrel on Monday.
The DOE has also worked with Congress to cancel a previously planned sale of 140 million barrels of oil from the reserve, something the department says should count toward the refilling of the stockpile.
"As promised, we have secured the 180 million barrels back to the Strategic Petroleum Reserve released in response to Putin’s war in Ukraine – and we accomplished this while getting a good deal for taxpayers and maintaining the readiness of the world’s largest Strategic Petroleum Reserve," said Energy Secretary Jennifer Granholm.
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