Oil price dip & the US is back on the bid to buy oil for Strategic Petroleum Reserve (SPR)

The U.S. Department of Energy’s (DOE) Office of Petroleum Reserves has announced:

• a solicitation for up to 3.3 million barrels of oil for delivery to the Strategic Petroleum Reserve (SPR) in October

Yep, the US is back on the bid for oil to further replenish Reserve stocks.

The DoE says:

• purchasing oil … (at) a price around $79 dollars per barrel or below (is) far less than the average of about $95 per barrel DOE received for 2022 emergency SPR sales
• DOE has already purchased a total of 32.3 million barrels of oil for an average price of $76.98

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SPR stockpiles have increased in each of the past six months. In April, though, the Department cancelled planned purchases of 1.5mn barrels each for August and September when prices jumped above the cap.

This article was written by Eamonn Sheridan at www.forexlive.com.