The North American country has announced a purchase of 3 million additional barrels of oil for its Strategic Petroleum Reserve(SPR), according to official reports from the Department of Energy. This acquisition is part of a gradual process of replenishing the reserve, following the largest sale in SPR’s history in 2022.
Acquisition of 3 million barrels of oil
Each barrel of oil will fetch an average price of US$77.69 and will be delivered to SPR by the end of the year. This effort is important, following the approval of the President of the United States, after he ordered the sale of 180 million barrels, over the course of six months last 2022.
In fact, the U.S. Department of Energy has so far recompleted 38.6 million barrels and will continue to evaluate opportunities to increase the Strategic Reserve. The U.S. government’s objective is to buy back oil for the SPR at a price of around $79.99 per barrel, as a favorable average.
The creation of the SPR dates back to the 1970s, following the Arab oil embargo. Arab oil embargo which generated fears of supply shortages and severely affected the U.S. economy. The Department of Energy awarded contracts to BP Products North America, for the allocation of 600,000 barrels, to Macquarie Commodities Trading US for another 1.5 million barrels of crude oil and, finally, to Atlantic Trading & Marketing for 900,000 barrels.
Follow us on social networks and don’t miss any of our publications!
YouTube LinkedIn Facebook Instagram X
Source: World Energy Trade
Photo: Shutterstock
Loading...
