The US has closed contracts for the acquisition of three million barrels of oil, meant to replenish the Strategic Petroleum Reserve (SPR), the Department of Energy disclosed on Tuesday.
The initiative follows extensive oil sales undertaken by the Biden administration last year, including a record-breaking transaction of 180 million barrels, aimed at stabilizing oil prices in the aftermath of Russia’s invasion of Ukraine. The procurement, set for delivery to Big Spring, Texas, was secured at an average cost of $77.31 per barrel — below the $95-per-barrel average it was sold for in 2022.
The US has now accumulated approximately 14 million barrels to replenish the SPR post-last year’s sales, with an additional 4 million barrels expected to return by February, as oil companies return borrowed stock through a swap.
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According to the Energy Department, the recent transaction involved Sunoco Partners Marketing & Terminals LP selling 1.2 million barrels, while Macquarie Commodities Trading US LLC and Phillips 66 each contributed about 900,000 barrels.
The department has also secured the cancellation of the scheduled congressionally mandated sales of 140 million barrels from the SPR from late 2023 to late 2026.
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