US Pulls Back Offer to Buy 6 Million Barrels of Oil for Emergency Reserve
08.02.2023 By Tank Terminals - NEWS

August 2, 2023 [Reuters]- The Biden administration has pulled an offer to buy 6 million barrels of oil for the Strategic Petroleum Reserve, an Energy Department spokesperson said on Tuesday, as oil prices are expected to keep rising after a output cut from Saudi Arabia.


The U.S. made the latest solicitation to buy the sour crude oil for the SPR on July 7. After the administration released a record 180 million barrels from the reserve last year to control prices after Russia’s invasion of Ukraine, the Energy Department has bought back 6.3 million barrels in recent months.

The move was not a rejection of oil companies’ offers to sell oil to the SPR but a decision made on “market conditions,” the spokesperson said. The person not specify what that meant, but tight oil supplies that have caused global oil prices to rise above $80 per barrel in recent weeks.

Oil prices are expected to rise further in coming months after Saudi Arabia said it would cut output by 1 million barrels per day starting in July, on top of other cuts from eight OPEC+ countries announced in April.

The American Petroleum Institute indicated on Tuesday that U.S. crude stocks fell about 15.4 million barrels in the week that ended July 28, sources said.

The Biden administration has said it wants to buy back oil for the reserve when it costs $67 to $72 per barrel.

The Energy Department “remains committed to its replenishment strategy for the SPR” which includes direct purchases, returns of oil that was loaned to companies in the wake of hurricanes and other supply disruptions, and cancellation of planned sales where drawdown is unnecessary, in coordination with Congress, the spokesperson said.

Last year’s record sales from the reserve have pushed its level of oil to the lowest in about 40 years, although domestic crude output is higher now.

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Hydrogen's Rise Fuels Global Ammonia Infrastructure Growth
10.03.2023 - NEWS
October 3, 2023 [Oil Price]- As hydrogen gains prominence amid the global pursuit of decarbonizat... Read More
Interview: Current African Refinery Development Plans Insufficient to Meet Future Demand
10.03.2023 - NEWS
October 3, 2023 [S&P Global]- Africa will remain a major importer of refined products in the ... Read More
Saudi Aramco Enters International LNG Market
10.03.2023 - NEWS
October 3, 2023 [Oil Price]- Saudi Aramco is entering the global LNG business by signing a deal t... Read More
Vopak Repurposed Existing Infrastructure to Support Energy Transition in California
10.03.2023 - NEWS
October 3, 2023 [Vopak]- Vopak celebrates the repurposing of 22 tanks at Vopak’s Los Angele... Read More