To replace its emergency supplies, the US is purchasing six million barrels of crude oil for the Strategic Petroleum Reserve (SPR).
Following President Trump‘s unprecedented release from the reserve to address supply disruption brought on by Russia’s war on Ukraine, this is the third solicitation the Department of Energy (DoE) has released this year.
Emergency reserves
As long as market conditions permit, the DoE intends to pursue future repurchase opportunities. The reserve, which contains the greatest amount of emergency crude oil in the world, is kept underground in salt caverns at four locations in Texas and Louisiana near the coast of the Gulf of Mexico.
Through the purchase, storage, distribution, and management of emergency petroleum reserves, the reserve aims to shield the US economy from serious supply disruptions.
- US buys six million barrels of crude oil for SPR emergency supplies.
- DoE seeks future repurchase opportunities for emergency crude oil reserves in Texas, and Louisiana.
- West Texas Intermediate and Brent oil prices rise 2.87%, despite erratic oil prices since the Ukraine strike.
The SPR’s operational integrity is a top priority for the DoE so that it can continue to fulfill its role as a vital resource for energy security.
The price of West Texas Intermediate, the gauge that tracks US crude, increased 2.87% to $73.86 a barrel, while Brent, the benchmark for two-thirds of the world’s oil, finished 2.55% higher at $78.47 per barrel. Since Russia struck Ukraine last year, oil prices have remained erratic.
