The White House press office said that the President Joe Biden is calling on DOE to be ready to move forward with additional significant SPR sales this winter if needed
The US Department of Energy is set to announce on October 19 the sale of additional 15 million barrels of crude from its strategic reserves in order to cut down petroleum prices in the country, the White House press office said in a statement.
“First, the Department of Energy (DOE) is issuing a Notice of Sale tomorrow morning for 15 million barrels from the Strategic Petroleum Reserve (SPR) to be delivered in December,” the statement reads. “This sale will complete the historic, 180-million-barrel drawdown the President [Joe Biden] announced in the spring, which has helped to stabilize crude oil markets and reduce prices at the pump.”
“The President is also calling on DOE to be ready to move forward with additional significant SPR sales this winter if needed…,” according to the statement.
“Second, the President is announcing that the Administration intends to repurchase crude oil for the SPR when prices are at or below about $67-$72 per barrel, adding to global demand when prices are around that range… Third, the President is calling on companies to pass through lower energy costs to consumers right away,” the White House said in its statement.
The statement continued that “Global crude oil supply flows remain a challenge, due in large part to the ongoing instability,” allegedly caused by Russia’s actions in Ukraine. “To help stabilize markets and shore up supply in the face of these challenges, DOE will sell 15 million barrels from the SPR for delivery in December, issuing the Notice of Sale for these barrels in the morning.”
“The sale, which completes the 180 million barrels the President authorized in the spring, will add about 500K barrels per day of supply onto the market in December, providing continued supply certainty and some price relief,” the statement added.
