US Purchases 1.5 Million Barrels for Strategic Petroleum Reserve, January 2025 Delivery

Aug 15, 2024, 06:07 PM

The U.S. Department of Energy has announced the purchase of 1.5 million barrels of oil for the Strategic Petroleum Reserve (SPR), with delivery scheduled for January 2025. This acquisition is part of a broader strategy to replenish the SPR, which has been drawn down recently to address high gas prices. The government plans to continue buying crude when prices are in the $70s per barrel or lower, aiming to add several million barrels to the reserve early next year. The Energy Department has directly purchased nearly 45 million barrels for the SPR at an average price of $77 per barrel. Contracts for the latest purchase, intended for the Bayou Choctaw site, were awarded to two companies after receiving 19 proposals from five companies. The White House has also indicated a long-term plan to reduce the SPR's crude storage by half over the next decade, selling off 270 million barrels and leaving 260 million barrels in reserve.