The race for generating solar…
Oil prices continued to fall…
The target date for selling 180 million barrels of crude oil from the U.S. Strategic Petroleum Reserve (SPR) appears to have been extended beyond October with the Department of Energy’s announcement on Monday that it would sell up to 10 million barrels for November delivery, Reuters reports.
The 10-million-barrel sale will bring total sales to 165 million barrels out of the 180-million-barrel target to be sold by the end of next month.
In March, the Biden Administration authorized the release of 1 million bpd from the SPR over a period of six months in a bid to lower oil prices and potentially boost domestic production through contracts with companies to purchase future oil at fixed prices.
The SPR releases are a response to the disruption of global oil markets caused by Russia’s invasion of Ukraine and subsequent Western sanctions that have led to soaring oil and gas prices.
Last week, Bloomberg reported that the Administration could start filling the SPR when oil prices drop below $80 per barrel. The timing is being considered as the Biden Administration looks to have U.S. oil production continue growing and prevent a plunge in oil prices, sources with knowledge of the matter told Bloomberg.
However, Washington denied that report, saying there would be no rush into buying crude to refill the SPR, and that the purchase plans were not pegged to any specific oil price below.
The new sale of 10 million barrels will be of sweet crude and contracts will be awarded by October 7th, according to Reuters, citing the Department of Energy.
When asked about a date for selling the full 180 million barrels targets, a senior Biden Administration official told reporters, as carried by Reuters, “As we look to the future, I think what you’re seeing right now is us evaluating the current market dynamics and making sure that our releases align with the needs.”
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com:
Charles is a writer for Oilprice.com
Biden knows his base can’t remember past a few weeks so his failures like Afghanistan, Ukraine, more C-Virus deaths than Trump, the Border, crime explosion, soaring interest rates, empty shelves, on and on will be buried until after November. Biden is making a desperate attempt to lower his Biden caused inflation and Biden caused sky-high prices at the pump before election day. So another 10 million bbls in Novemeber (Hmmm why Novemeber??). On top of that the news headlines just said that we gained 2.4 million bbls last week (counting private stocks only) which is a complete lie. When you look at the Strategic Petroleum Reserve release of 8.4 million bbls which is hidden in the fine print the US is not close to producing enough oil to meet demand. Biden's Pretorian Guard "The main stream media" is not reporting the SPR has now been drained to the lowest level since 1984. It's like you're shopoholic wife telling you her spending is down when in reality she is draining your IRA to make the checking account look good so she can buy more shoes when there’s plenty of shoes in the closet.