The US Department of Energy said it will buy three million barrels of crude oil for the Strategic Petroleum Reserve for delivery in August, and has requested bids by May 31.
“This announcement advances President (Joe Biden’s) strategy to replenish resources following its historic release from the Strategic Reserve to address significant global supply disruption caused by the war on Ukraine and provide a wartime bridge to increase domestic production,” the ministry said in a statement .
And she affirmed that the Ministry of Energy “is committed to implementing the strategic petroleum reserve renewal strategy that provides the best deal for taxpayers, with the aim of buying back crude oil at a price below the average of $ 95 per barrel at which it was sold in 2022, while strengthening energy security,” stressing that it intends Buy more oil later this year.
Last year, the Biden administration conducted the largest reserve sale of 180 million barrels, as part of a strategy to stabilize oil markets and combat high gasoline prices, which led to a reduction in the US strategic stockpile to about 372 million barrels, which is the lowest level since 1983. Less than enough to cover 20 days at current consumption rates.
The administration said it would start buying oil back into reserves when prices are stable at $67 to $72 a barrel or lower, well below the level at which it sold oil, so that taxpayers can get some benefit.
This article was originally published by RT.
