The Energy Department said it awarded contracts to buy 2.95 million bbl of U.S.-produced crude for the Strategic Petroleum Reserve.
The awards are for June delivery and are based on a Jan. 31 solicitation.
DOE said Thursday it purchased the crude oil at an average price of $77.81/bbl, below the $79/bbl prices the government has suggested is its price ceiling.
DOE said the acquisition price is well under the average $95/bbl sales price it received in various SPR sales in 2022.
Eight companies responded to the request for proposals and the barrels are to be delivered to the Big Hill SPR storage site in June.
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— Reporting by Tom Kloza, tkloza@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com
(END) Dow Jones Newswires
February 15, 2024 16:08 ET (21:08 GMT)
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