Biden administration to sell 26 million bbl SPR crude

The Biden administration plans to sell 26 million bbl of crude oil from the Strategic Petroleum Reserve (SPR), which Congress had mandated in previous years.

The sale could push reserves down below their current level of about 372 million bbl to 345 million bbl, the lowest level since 1983. Bids for the oil are due to expire on Feb. 28, and the oil will be delivered between Apr. 1 and June 30, the US Department of Energy (DOE) said.

The department had considered canceling the fiscal year 2023 sale of the 26 million bbl after the Biden administration sold a record 180 million bbl from SPR last year. But such a cancellation would have required action by Congress.

DOE said it is implementing a three-part strategy to replenish long-term reserves, including buybacks with revenues from emergency sales, returns from prior exchanges, and working with Congress to avoid "unnecessary sales unrelated to supply disruptions," to strategically maintain volume.

Last year, Congress canceled about 140 million bbl of SPR sales scheduled for fiscal years 2024 through 2027, after a DOE proposal to stop them.