The Biden administration announced on Monday that it has acquired 4.65 million barrels of crude oil for the nation’s emergency stockpile as part of ongoing efforts to replenish the Strategic Petroleum Reserve (SPR). The Energy Department has been gradually rebuilding the reserve, which had dipped to its lowest levels in four decades following a significant drawdown prompted by Russia’s invasion of Ukraine. Last year, in response to soaring gasoline prices, the administration released a record 180 million barrels from the emergency supply.
The current purchases come amid a decline in crude oil prices, which have dropped approximately 10% since early April. Deputy Energy Secretary David Turk expressed the administration’s intention to continue capitalizing on favorable pricing: “We will keep buying back. We will keep going into next year and try to buy back as much as we are capable of buying back.”
The contracts announced on Monday bring the total amount of oil purchased for the reserve’s replenishment to 43.25 million barrels. According to the Energy Department, the average purchase price was $77 per barrel. Additionally, the agency reported that it has expedited the return of 5.5 million barrels that were previously loaned to oil companies.
Exxon Mobil and Macquarie were awarded the contracts, and the oil will be delivered to the Bayou Choctaw storage site of the reserve from October 1 through December 31, as stated by the Energy Department.
Currently, the Strategic Petroleum Reserve holds 375 million barrels of oil, a significant decrease from approximately 600 million barrels at the beginning of 2022, according to data from the Energy Department.
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