Usa To Add 3 Million Barrels Of Crude Oil To Its Stockpile

 Usa To Add 3 Million Barrels Of Crude Oil To Its Stockpile

USA To Add 3.1 Million Barrels of Crude Oil To its Stockpile

On Friday, the US Department of Energy awarded contracts to several companies for delivering around 3 million barrels of crude oil. These will be added to the country's strategic petroleum reserve during August at a price of $73/barrel.

In May, the DEO announced its purchase plan to refill the crude oil stockpile once again after releasing a big quantity during the start of the Russia-Ukraine war.

USA To Pay $73/Barrel Of Crude Oil

Overall, the USA will pay around $73 per barrel, that's a lot lower than the price of $95 at which SPR sold its reserves. This tells us that the DOE made a good deal benefiting the US taxpayers.

In total, around 5 companies have won the contract to supply crude oil to the DEO. These companies include Exxon Mobil, Atlantic Trading & Marketing, Sunoco Partners Marketing & Terminals, Gunvor USA, and Macquarie Commodities Trading.

Earlier, the US administration said that it will only start building its reserves once the oil prices reach $72 or lower. But it seems that the USA managed to secure a good deal even at $73/barrel.

According to the DEO, the crude oil barrels will be sent to the state of Texas where the Bill Hill SPR site is located.

In addition, the DOE also revealed its plans to buy an additional 3 million barrels of crude oil due for delivery in September. As per the details, bids for this procurement must be sent by June 20.

Last year, the sale of crude oil from the US Strategic reserve raised a lot of eyebrows. Within the USA, the Republican party accused the government of thinking of the supply buffer. Outside the USA, the Kingdom of Saudi Arabia was also upset as this move depressed the prices of crude oil.

Over all, this move by the USA will support the oil prices for at least the next 2 months until the USA fills its strategic reserves once again.

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