The Biden Administration’s Energy Department has put out another solicitation to buy oil to replenish the Strategic Petroleum Reserve, a national security priority. But it’s only going to buy 3.3 million barrels for delivery in October, when it thinks the price will be around $79 per barrel.
Last month, as the Administration has done numerous times in the past two years, the Department of Energy canceled purchase agreements to replenish the nation’s emergency supply. It refused to award contracts for 3 million barrels of crude oil in Augusts and September, because the price was more than $84 a barrel for West Texas Intermediate.
Since Biden took office, he has sold off the nation’s strategic oil reserve to the point where it reached the lowest level in its history earlier this year — 346 million barrels. Since then, the Administration has put back a net 20 million barrels into the storage units at an average price of $76.98. But it’s a drop in the bucket.
The deadline for offers to sell petroleum to the Department of Energy is May 14, for delivery in October, but there’s no guarantee the price will be below $77. Saturday’s price for West Texas Intermediate was $78.26 for a 42-gallon barrel.
In December of 2022, the department said it would start refilling the empty tanks at a price below $96 a barrel. Then it said it would buy oil lower than $72 a barrel. It has canceled numerous announced purchases, however.
Biden continues to blame his draining of the Strategic Petroleum Reserve on the war by Russia on Ukraine.
