The DOE announced Friday it will purchase 3 million barrels of oil to replenish the supply it depleted from the Strategic Petroleum Reserve in a bid to lower gas prices
* The department said it will purchase the oil for less than the $96 per barrel it sold its supply for
* Three million barrels, only 15 percent of daily U.S. demand, is a drop in the bucket of the 180 million DOE has depleted the reserve of since March
* At the same time the department will tap 1.8 million barrels from the reserve in an emergency exchange after a shutdown of the Keystone pipeline
The Department of Energy (DOE) announced Friday it will purchase 3 million barrels of oil to replenish the supply it depleted from the Strategic Petroleum Reserve in a bid to lower gas prices.
The department said it will purchase the oil for less than the $96 per barrel it sold its supply for.
Three million barrels, only 15 percent of daily U.S. demand, is a drop in the bucket of the 180 million DOE has depleted the reserve of since March.
The deal is part of a fixed-price plan that allows refiners to sell oil to the SPR at a stable rate and avoid selling at the volatile oil market's rate on any given day.
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Update #1: U.S. begins buying back oil for strategic petroleum reserve -official (Reuters)
Update #2: Biden administration to buy 3 million barrels of oil to replenish reserves (The Hill)
WNU Editor: No mention among the legacy media on sky-high home heating and diesel fuel prices. I live in Montreal, and the price of home heating oil is now jaw-dropping ($2.35 Canadian/liter or almost $8 US/gallon).