The US Department of Energy will sell up to 10 million barrels of sweet crude from the Strategic Petroleum Reserve as it continues the largest-ever drawdown from the emergency stockpile, the department said Sept. 19.
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The DOE is offering up to 5 million barrels from Big Hill in Texas and up to 7 million barrels from West Hackberry in Louisiana for delivery in November. Bids are due by 10 am CT Sept. 27, and contracts will be awarded no later than Oct. 7, the department said.
The sale continues President Joe Biden's historic commitment to release 180 million barrels, or roughly 1 million b/d, from the SPR from April through the end of October. Some 155 million barrels of crude have already been delivered or committed for delivery under the release to help mitigate global supply disruptions caused by Russia's invasion of Ukraine and help lower energy costs.
According to a recent analysis from the Treasury Department, the SPR releases, along with an additional 60 million barrels released by international allies and partners, curbed prices at the pump by as much as 42 cents/gal, compared with where they may have soared absent the releases.
"We have seen [gasoline] prices decline for more than 95 consecutive days," a senior administration official said on a call with reporters.
The official explained that the DOE is monitoring global oil markets, US crude output, terminal availability and a number of other factors to aid it in determining "the right cadence for both noticing how much oil we are going to release as well as securing delivery for those amounts."
"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 are aligned with the needs," the official added.