US bought 6 million barrels of oil for strategic reserve.
The US purchased 6 million barrels of oil for its strategic reserve with delivery until May 2025, reported the country's Department of Energy.
These purchases are part of efforts to replenish stocks after President Joe Biden ordered the largest sale from the reserve in 2022 - 180 million barrels, aiming to control fuel prices following Russia's full-scale invasion of Ukraine.
The US purchased 3.5 million barrels from Exxon Mobil, 2 million from Shell Trading Company and 500 thousand from Macquarie Commodities Trading US for a total of over 411 million dollars, the Department reported.
The crude oil, which can be processed at US refineries, will be delivered at a rate of 1.5 million barrels per month from February to May next year to the Bayou Choctaw plant in Louisiana.
After that, the department will have sufficient funds in its reserve for purchases to acquire about 2 million more barrels at around 75 dollars per barrel. To continue replenishing the strategic reserve after this, the department must apply to Congress for additional funds and/or convince it to cancel future congressionally authorized sales.
The department previously worked with Congress about two years ago to help replenish the Strategic Petroleum Reserve by canceling sales of 140 million barrels planned until 2027, to fund state programs.
Source: enkorr
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