Oil prices fall and the United States reverses its oil purchase offer for the Strategic Petroleum Reserve (SPR)

The U.S. Department of Energy (DOE) Office of Petroleum Reserves announced:

• a solicitation for up to 3.3 million barrels of oil for delivery to the Strategic Petroleum Reserve (SPR) in October

Yes, the United States is reversing its oil supply to further replenish its reserve stocks.

The DoE says:

• buy oil… (at) a price of about $79 per barrel or less (is) well below the average of about $95 per barrel that the DOE received for emergency SPR sales in 2022
• The DOE has already purchased a total of 32.3 million barrels of oil at an average price of $76.98.

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SPR stocks have increased in each of the last six months. In April, however, the ministry canceled planned purchases of 1.5 million barrels each for August and September when prices exceeded the ceiling.