The US Department of Energy (DOE) is seeking up to 4.5 million barrels (mbbl) of oil for the country’s Strategic Petroleum Reserve (SPR) from October through December.
Additionally, the department is now arranging the return of nearly 4mbbl barrels of exchanged oil as part of its plan to replenish the SPR, aimed at helping “bring down prices for American consumers and businesses”.
The department recently offered to purchase oil to restock the SPR, with US Energy Secretary Jennifer Granholm, according to a US news outlet, saying in June that the department could quickly replenish the SPR this year.
US President Joe Biden authorised the sale of 180mbbl from the emergency reserve in 2022, marking the largest sale ever, in response to the Russian invasion of Ukraine.
“The DOE continues to aim for $79 per barrel or less, significantly lower than the average of about $95 per barrel DOE received for 2022 emergency SPR sales,” the department said in a statement.
However, according to Reuters, the price of $79 is significantly less than the $82.10 per barrel that the West Texas Intermediate benchmark closed at on Wednesday. This price increase occurred during the peak summer driving season in the US and followed a surge in US refining activity last week.
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By GlobalData
Read More: US Energy Department wants 4.5 million barrels of oil for its SPR