Biden Administration Buys Oil for Emergency Reserve Above Target Price
(Reuters) — The Biden administration on Wednesday awarded contracts to buy 2.8 million barrels of oil for the government's emergency reserve for more than $81 a barrel, $2 above the target purchase price.
The Department of Energy (DOE) said it will spend $225.6 million to buy oil to refill the Strategic Petroleum Reserve (SPR) from Atlantic Trading & Marketing, Macquarie Commodities, and Sunoco Partners Marketing & Terminals. The oil is set to be delivered in September.
The price is about $81.32 a barrel, based on the DOE announcement. The energy department has previously said it aims to purchase at a price of $79 per barrel or below, less than the average of about $95 it received for 2022 emergency SPR sales.
A spokesperson for the Department of Energy said the average purchase price for Wednesday's and earlier purchases together remained below $79.
DOE has already purchased 26.28 million barrels of oil for the SPR for an average price of $76.47, as well as accelerated nearly 4 million barrels of exchange returns.
Related News
Related News
- Williams Seeks Emergency Certificate to Operate $1 Billion Mid-Atlantic Gas Pipeline After Court Reversal
- Energy Transfer Subsidiary Selects KTJV for Lake Charles LNG Export Project
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Another Major U.S. Oil Refinery Shutting Down as Lyondell Confirms Houston Closure
- Four Petroleum Liquids Pipelines Completed in U.S. Since 2023
Comments