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US Department of Energy Rejects Oil Stockpile Bids

In February, the US Department of Energy (DOE) rejected the first round of bids from oil companies to supply oil to the Strategic Petroleum Reserve (SPR).

Oil Storage Tanks
Oil Storage Tanks

A spokesperson said that "DOE will only select bids that meet the required crude specifications and that are at a price that is a good deal for taxpayers." The DOE plans to purchase up to 3 million barrels for delivery in February, the first buy since the 180 million barrel release in March 2021 to combat rising gasoline prices. The administration aims to repurchase the oil at around $70 a barrel.

SPR Levels at Lowest Since 1984

The sale of 180 million barrels in March 2021 reduced SPR levels to the lowest since 1984. President Joe Biden announced the sale in response to the invasion of Ukraine by Russia, the world's largest fossil fuel exporter.