The Department of Energy announced this week that it has awarded contracts for its December purchase of 3M barrels of crude oil for the Strategic Petroleum Reserve (SPR), America's emergency supply of petroleum.
It will bring the total amount of oil purchased in 2023 to 13.8M barrels as the Biden administration attempts to refill the reserve after selling off more than 40% of its stockpile.
The December contracts would purchase the crude oil at an average price of $77.31 a barrel - slightly above the average price of crude ($75.03) purchased throughout 2023 by DOE.
The purchase is scheduled to be delivered in March 2024. (Washington Examiner 12/27/23) The breakdown so far of DOE oil purchases to refill the SPR (msn.com)
Regional Note: The Strategic Petroleum Reserve is an emergency stockpile of petroleum maintained by DOE. It is the largest publicly known emergency supply in the world; its underground tanks in Louisiana and Texas have capacity for 714M barrels.
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