The US Department of Energy (DOE) intends to replenish the country’s Strategic Petroleum Reserve (SPR) with a plan to take bids to repurchase a third of the 180 million bbl released earlier this year aimed at easing oil prices in response to Russia’s war in Ukraine.
The plan, set to begin this fall, will ensure the SPR continues as an available resource to alleviate domestic and global crude oil supply disruptions, the agency said in a release May 5.
In late March, the DOE said it would execute President Biden’s authorization of an immediate release of 1 million b/d for 6 months from the stockpiles, coordinating with the 30 member countries of the International Energy Agency release additional oil from strategic reserves.
“Call for bids will take place in the fall of 2022 to secure delivery in future years when prices are anticipated to be significantly lower than they are today and will represent a first tranche of purchases to replenish the SPR, with more planned after these purchases are executed,” the release said.
