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The US Seeks to Purchase 6 Million Barrels of Oil to Cover Strategic Reserve Deficit

August 13, 2024

The United States is seeking to purchase an additional 6 million barrels of oil from energy companies to help cover the deficit in its Strategic Petroleum Reserve.

According to the US Department of Energy, this is the first action of its kind to deliver oil to the Bryan Mound facility in Texas since the facility underwent maintenance and repair work.

The department is working to deliver 2 million barrels of oil per month to Bryan Mound from January to March of next year.

“The Department of Energy will continue to evaluate options to cover the deficit in the Strategic Reserve while ensuring a good deal for taxpayers,” said Charisma Troiano, a spokeswoman for the Department of Energy.

West Texas Intermediate crude prices rose to $78.72 a barrel todayas supply risks from the Middle East increased and fears of a recession in the United States receded.

However, prices are still slightly below the $79 to $79.99 range at which the United States wants to buy oil to cover the shortage in the Strategic Petroleum Reserve.

In an effort to calm fuel prices, the ministry is working to slowly fill the shortfall in its strategic reserves after selling 180 million barrels in 2022 when Russia invaded Ukraine, the largest sale ever from the reserve.