US seeks up to 3 million barrels of oil for emergency reserve 4:42 PM EDT

Source: MarketWatch

Published: Oct. 28, 2024 at 4:00 p.m. ET


The Energy Department issued a new call to buy oil for the Strategic Petroleum Reserve as prices fall further from its $79 a barrel target acquisition price. The DOE said Monday it will take bids for up to 3 million barrels of oil for delivery to the SPR's Bryan Mound site in Texas from April through May. Bids for the latest solicitation are due by Nov. 6.

The department said it has bought more than 55 million barrels to date to replenish the SPR at an average price of about $76 a barrel, compared with the $95 a barrel received for emergency sales from the reserve in 2022 to contain the cost of oil products for consumers after the Russian invasion of Ukraine.

The DOE said it's still aiming to buy oil at $79 a barrel or less to refill the reserve, "taking into account planned exchange returns and market developments."

Oil prices fell Monday after Israel's retaliatory attack on Iran this past weekend avoided oil or nuclear facilities, reducing concerns in the market about an escalation of the conflict that could disrupt oil supplies. West Texas Intermediate crude, the U.S. benchmark, fell 6.1% to $67.38 a barrel on the New York Mercantile Exchange.

Read more: https://www.marketwatch.com/story/doe-seeks-3-million-barrels-of-oil-for-strategic-petroleum-reserve-6571261c