The U.S. Department of Energy announced on Tuesday that contracts to buy three million barrels of oil have been finalized, contributing to the replenishment of the Strategic Petroleum Reserve (SPR), which saw its largest sale ever last year.
The agency stated that it purchased the oil for transportation to a location in Big Spring, Texas, at a cost per barrel of $77.31, which is less than the average price per barrel of $95 that the oil was sold for in 2022.
Following Russia’s invasion of Ukraine, a major exporter of crude oil, the government of President Joe Biden staged sales last year, including a record one of 180 million barrels, to help stabilize oil prices.
The US has already purchased almost 14 million barrels to replenish after last year’s sales. By February, oil companies that had borrowed oil through a swap will also be returning almost 4 million barrels to the SPR.
Sunoco Partners Marketing & Terminals LP sold 1.2 million barrels to the SPR in the most recent transaction, according to the Energy Department’s website. Macquarie Commodities Trading US LLC and Phillips 66 both sold roughly 900,000 barrels.
Sales from the SPR that were required by Congress and were slated to take place from late this year to late 2026 totaling 140 million barrels have already been cancelled, thanks to efforts made by the Energy Department. Regarding restocking, the agency has stated that the cancellation “has led to significant progress.”
