US Purchases 2.5 Million Barrels of Oil for Strategic Reserve 

The U.S. Department of Energy announced that the United States has purchased approximately 2.5 million barrels of oil to help replenish the Strategic Petroleum Reserve after the largest-ever emergency drawdown in 2022.

The department added that about 800,000 barrels per month of relatively high-sulfur crude oil will be delivered to the reserve’s site in Bryan Mound, Texas, from January to March of next year. The department stated that a contract to purchase oil worth over $180.3 million was awarded to Macquarie Commodities Trading.

On August 12, the department announced its intention to purchase up to 6 million barrels at a rate of 2 million barrels per month from January to March. It did not immediately respond to an inquiry about the potential purchase of the remaining 3.5 million barrels for delivery to Bryan Mound during that period.

The Department of Energy stated that the administration has so far repurchased more than 47 million barrels at an average price of $76.89 per barrel, which is about $18 less than the average price of $95 per barrel at which the oil was sold in 2022.