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U.S. To Refill SPR This Year If Advantageous

After saying it would take years to refill the SPR, U.S. Energy Secretary Jennifer Granholm is now saying that the Biden Administration plans to refill the SPR soon.

According to Secretary Granholm, the Biden Administration hopes to refill the SPR at lower oil prices yet this year—provided it is advantageous to taxpayers.

WTI prices dipped to sub-$70 per barrel last month but have since surged back to more than $83 per barrel. Last October, the Administration said it would repurchase crude oil for the SPR when prices were at or below $67-$72 per barrel.

The Administration sold off 221 million barrels of crude oil from the SPR last year, with the intent of replacing what it withdrew when the market conditions were right. In December, it announced its intention to make the first 3 million barrels of those repurchases and asked for bids by December 28. It did not, however, get offers that met its terms for price or quality, according to the Administration.

Granholm said earlier this year that refilling the SPR at $70 per barrel in 2023 would be difficult.

Granholm said on Wednesday that the United States couldn’t repurchase crude oil for the SPR and sell crude oil out of the SPR at the same time. The DoE is actively selling crude oil from the SPR as part of a congressional mandate that will see another 26 million barrels leave the reserve between now and the end of June, with 2 million barrels released over the last two weeks.

 After the recent releases from the Strategic Petroleum Reserves, inventories in the nation’s reserves have sunk to 369.6 million barrels—down from 638 million barrels at the beginning of 2021, and the lowest amount of crude oil held in the stockpiles since November 1983.

By Julianne Geiger for Oilprice.com

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  • David on April 13 2023 said:
    Good luck with that plan. Oil demand is only increasing while supply continues to degrade, democrats are setting themselves up for an inevitable gotcha moment by continuing to kick this can down the road. one of three scenarios are likely to play out. they have to refill at higher cost, they don't refill and an inevitable storm or other disaster plays out and the reserve is depleted, or republicans take the white house and have to refill it for him. either way it's a black eye for the party, and these are best case scenarios.
  • Mike Lewicki on April 12 2023 said:
    For North Americas Sake:

    Make a deal with ALBERTA to help refill the US SPR. Make a massive military deal for jets, ships, radar, in return.

    We need better Policy and Action.

    Deals!

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