In a bid to replenish its strategic petroleum reserve, the United States is set to conduct monthly tenders for oil purchases, extending the initiative at least until May. The Biden administration is actively addressing the caverns’ depletion, which currently hover at levels not seen in four decades. The Department of Energy recently issued a solicitation on Friday, inviting bids for the acquisition of up to 3 million barrels of sour oil scheduled for delivery in March. This move follows a prior tender for the same quantity slated for February.
To date, the government has acquired approximately 9 million barrels of oil, averaging $75 per barrel, and secured an additional nearly 4 million barrels through accelerated exchange returns. These efforts are a response to the historic release of 180 million barrels in the aftermath of the Russian invasion of Ukraine. Notable companies, such as Exxon Mobil Corp, Phillips 66, and Macquarie Group Ltd, have been part of the suppliers contributing to the US oil stockpile.
