The United States seeks to buy 6 million barrels of oil to boost strategic oil reserve
The US Department of Energy announced its intention to purchase an additional six million barrels of oil from energy companies to help fill the nation’s strategic oil reserve.
The move is the first of its kind to be delivered to the Bryan Mound facility in Texas since the facilities there underwent maintenance and repairs, the department said.
The US Energy Department seeks to deliver two million barrels of oil per month to the Brian Mound site between January and March of next year.
Energy Department spokeswoman Charisma Troiano said the department will continue to evaluate options to fill the gap while ensuring a win-win deal for taxpayers.
Coinciding with the announcement, West Texas Intermediate crude prices rose to $78.72 a barrel, amid growing supply risks from the Middle East and easing fears of a recession in the United States.
However, prices remain slightly below the target level of buying, which is between $79 and $79.99 a barrel, which is the range that the United States seeks to exploit to buy oil to replenish its strategic reserve.
The move comes as part of the ministry’s efforts to cool fuel prices as it slowly rebuilds its strategic reserves after selling 180 million barrels in 2022, when Russia invaded Ukraine, in the largest sale ever from the reserve.
So far, the United States has bought about 43 million barrels from oil companies to make up for the shortfall.
