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Showing results for tags 'strategic petroleum reserve'.
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America surprises the oil market.. Postponing the strategic reserve renewal plan 2023.01.08 - 14:33 Baghdad - people It seems that the rise in oil prices is higher than the US targets, prompting the Biden administration to delay the renewal of the emergency oil reserves in the country, after it was decided that the offers it received were either too expensive or did not meet the required specifications. The Energy Department turned down several offers for a potential purchase in February, according to US reports. Earlier, the US Department of Energy indicated its intention in December to start restocking the strategic petroleum reserves, starting with the purchase of 3 million barrels next month, i.e. January 2023. Historic release The plan follows the historic release of 180 million barrels of oil from reserves ordered by President Joe Biden as he seeks to tame high gasoline prices in the wake of Russia's invasion of Ukraine. It is expected that the purchase program, which used a new approach that accepts fixed-price offers, will continue during the coming period, according to American reports. And the Biden administration had planned to start buying crude when it fell by about $ 70 a barrel, as oil fell during the fourth quarter and US record prices fell near those levels last month. Long term plan The DOE has developed a long-term plan to transition from issue to renewal, and said it is committed to doing so in a way that provides a fair deal. The Energy Department said it would only select bids that meet the required crude specifications and at a price that is a bargain for the taxpayer. After reviewing the initial submission, the Energy Administration will not make any selections for deals submitted for delivery in February, according to a US Department of Energy statement. strategic reserve And US President Joe Biden, more than any of his predecessors, has relied heavily on stockpiles of oil from emergency reserves to bring down high prices that voters hate. The SPR is a series of underground storage depots that hold vast quantities of crude oil that can be used during wars, hurricanes, or other moments of distress. The amount of oil in the Strategic Petroleum Reserve has fallen by nearly a third - 36% to be exact - since Biden took office in January 2021. Thus, the emergency oil stock is at its lowest level since June 1984, a time when both the US economy and energy demand were much lower than they are today. The Strategic Petroleum Reserve - the world's largest emergency supply - was created in 1975 in the wake of the Arab oil embargo. Quoted from "Investing"
