07/17 Closing Prices / revised 07/18/2024 07:33 GMT |                                   07/17 OPEC Basket   $84.56   +$0.12 cents 07/17 Mexico Basket (MME)  $76.44   +$1.47 cents  | 06/31 Venezuela Basket (Merey)   $69 23   -$1.22 cents| 07/17 NYMEX WTI  August CLQ24  $82.85 +$2.09 cents | 07/17 ICE Brent Sept  BRNU24  $85.08 +$1.35 cents  | 07/17 NYMEX Gasoline Aug RBQ24  $2.50 + 1 %  |  07/17 NYMEX  Heating Oil  Aug  RBQ 24 $2.49  +1% | 07/17 Natural Gas August NGQ 24    $2.04   -7%  | 07/12 Active U.S. Rig Count (Oil & Gas)    584  -1  | 07/18 USD/MXN Mexican Peso   17.7334 (data live)  | 07/18 EUR/USD   1.0929 (data live)  | 07/18 US/Bs. (Bolivar)   $36.5407000 (data BCV) |

US to Sell 26 Million More Barrels From Strategic Oil Reserve – Bloomberg

The sun rises beyond oil storage tanks.
The sun rises beyond oil storage tanks. (Daniel Acker/Bloomberg)

Jennifer Jacobs and Ari Natter, Bloomberg News

WASHINGTON
EnergiesNet.com 02 15 2023

The Biden administration plans to sell more crude oil from the Strategic Petroleum Reserve, fulfilling budget directives mandated years ago that it had sought to stop as oil prices have stabilized. 

The congressionally mandated sale will amount to 26 million barrels of crude, according to people familiar with the matter. The sale is in accordance with a budget mandate enacted in 2015 for the current fiscal year, said a spokesperson for the Department of Energy. 

The Energy Department has sought to stop some of the sales required by 2015 legislation so that it can refill the emergency reserve, which currently has about 371 million barrels. After this latest release, the reserve will dip to about 345 million.

Biden officials decided last year to tap 180 million barrels from the strategic reserve in an effort to ease supply issues after Russia invaded Ukraine, upending global oil flows and sending crude above $100 a barrel. Some Republicans have criticized the Biden administration for that drawdown, which was the biggest release ever and helped drain the SPR to its lowest level since 1983. Critics admonished the move as a political stunt intended to combat rising gasoline prices ahead of midterm elections.

Biden officials have since spoken with energy companies about purchasing oil to refill the SPR when prices approach $70 a barrel. 

The latest release comes after Russia unveiled plans to curtail production by half-a-million barrels a day next month to retaliate against sanctions. Russia’s move, which was downplayed by the European Union, follows China’s rapid economic reopening with the scrapping of Covid-19 restrictions. The SPR release may give pause to the OPEC+ alliance, which earlier said that global oil markets remain balanced. 

Market reaction

The US House last month passed legislation meant to curb the Energy secretary’s ability to use the reserve unless the government increases the amount of federal lands available for gas and oil drilling.

Other congressionally required releases — about 140 million barrels slated for fiscal years 2024 through 2027 — were canceled at the Energy Department’s behest after lawmakers in December approved a provision in a giant spending bill. 

West Texas Intermediate, the US benchmark for crude, fell 1% to trade near $79 a barrel after the announcement of more barrels. 

–With assistance from Lucia Kassai.

bloomberg.com 02 13 2023

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com


CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved
 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

 
 
Scroll to Top