United States Planning to Purchase 3 Million Barrels of Oil

The U.S. Department of Energy announced on Monday that it will purchase three million barrels of crude oil for the Strategic Petroleum Reserve to be delivered in August, with bids due by May 31. Last year, President Joe Biden's administration conducted the largest-ever sale from the reserve, totaling 180 million barrels, as part of a strategy to stabilize rising oil markets and combat high gasoline prices following Russia's invasion of Ukraine. The sale sparked anger among Republicans, who accused the administration of depleting the oil reserve to a level that limits the United States' ability to face future supply crises. The sales have reduced the strategic stockpile to about 372 million barrels, the lowest level since 1983, which is just enough to cover 20 days at current consumption rates. The administration stated it would begin repurchasing oil for the reserve when prices stabilize at $67 to $72 per barrel or lower, which is significantly lower than the price at which oil was sold, allowing taxpayers to reap some benefits. U.S. crude prices were around $71 per barrel on Monday.