President Joe Biden and his administration announced last month that it would begin refilling the Strategic Petroleum Reserve (SPR) by purchasing three million barrels of crude oil after wiping out approximately 40 percent of emergency stocks.
Well, not anymore.
Bloomberg reported that the White House had postponed replenishment after concluding that the offers it received were too expensive or failed to meet specifications.
In response to the report, the Department of Energy issued a statement:
“DOE has put forth a long term plan to transition from release to replenishment, and we’re committed to doing so in a manner that provides a fair deal for taxpayers,” it said. “DOE will only select bids that meet the required crude specifications and that are at a price that is a good deal for taxpayers,” it said. “Following review of the initial submission, DOE will not be making any award selections for the February delivery window.”
The administration had previously stated it would start buying barrels of crude once prices dipped to $70. While West Texas Intermediate (WTI) prices have slumped so far this year, they are still trading at around $75 on the New York Mercantile Exchange.
In the meantime, the U.S. government will continue drawing down from the SPR, which presently stands at approximately 370 million barrels.
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