U.S. Purchases 6 Million Barrels for Strategic Petroleum Reserve

WASHINGTON (Reuters) – The U.S. has bought 6 million barrels of oil for the Strategic Petroleum Reserve (SPR) for delivery through May 2025, as announced by the Department of Energy on Monday.

These purchases aim to replenish stockpiles after President Joe Biden ordered the largest sale from the reserve in 2022, which totaled 180 million barrels, in response to rising fuel prices due to Russia's invasion of Ukraine.

The specific transactions include:
– 3.5 million barrels from Exxon Mobil (NYSE:XOM)
– 2 million from Shell (LON:SHEL) Trading Company
– 500,000 from Macquarie Commodities Trading US
This totals over $411 million, according to the department.

The sour crude, which many U.S. refineries are designed to process, will be delivered at a rate of 1.5 million barrels per month from February to May next year to the Bayou Choctaw site in Louisiana.

Following these purchases, the department has enough funds for approximately 2 million more barrels at around $75 per barrel. To continue replenishing the SPR thereafter, the department may need to request additional funds from Congress or seek to cancel scheduled congressionally-mandated sales.

Previously, the department collaborated with Congress nearly two years ago to help restore the SPR by cancelling sales of 140 million barrels that were mandated through 2027 to finance government programs.