(Reuters) – The USA has finalized contracts to buy three million barrels of oil to assist replenish the Strategic Petroleum Reserve (SPR) after the most important sale in historical past final yr, the U.S. Division of Vitality mentioned on Tuesday.
The division mentioned it purchased the oil, for supply to a web site in Huge Spring, Texas, for a mean of $77.31 a barrel, under the typical of $95 a barrel that oil bought for in 2022.
The administration of President Joe Biden had carried out gross sales final yr, together with a report one among 180 million barrels, to assist management oil costs after Russia, a big crude exporter, invaded Ukraine.
The ushas now bought about 14 million barrels for replenishment after final yr’s gross sales. About 4 million barrels are additionally coming again to the SPR by February as oil firms return oil that had been loaned to them by means of a swap.
On the most recent transaction, Sunoco Companions Advertising & Terminals LP bought 1.2 million barrels to the SPR, whereas Macquarie Commodities Buying and selling US LLC and Phillips 66 every bought about 900,000 barrels, the Vitality Division mentioned on its web site.
The Vitality Division had already secured the cancellation of 140 million barrels in congressionally mandated gross sales from the SPR scheduled from late this yr by means of late 2026. The cancellation “has led to vital progress towards replenishment,” the division has mentioned.
(Reporting by Richard Valdmanis and Caitlin Webber; Modifying by Dan Whitcomb and Chris Reese)
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