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(Reuters) – The USA has finalized contracts to buy three million barrels of oil to assist replenish the Strategic Petroleum Reserve (SPR) after the biggest sale in historical past final yr, the U.S. Division of Power mentioned on Tuesday.
The division mentioned it purchased the oil, for supply to a web site in Huge Spring, Texas, for a median of $77.31 a barrel, beneath the common of $95 a barrel that oil offered for in 2022.
The administration of President Joe Biden had performed gross sales final yr, together with a document one in every of 180 million barrels, to assist management oil costs after Russia, a big crude exporter, invaded Ukraine.
The united stateshas now bought about 14 million barrels for replenishment after final yr’s gross sales. About 4 million barrels are additionally coming again to the SPR by February as oil corporations return oil that had been loaned to them via a swap.
On the newest transaction, Sunoco Companions Advertising and marketing & Terminals LP offered 1.2 million barrels to the SPR, whereas Macquarie Commodities Buying and selling US LLC and Phillips 66 every offered about 900,000 barrels, the Power Division mentioned on its web site.
The Power Division had already secured the cancellation of 140 million barrels in congressionally mandated gross sales from the SPR scheduled from late this yr via late 2026. The cancellation “has led to vital progress towards replenishment,” the division has mentioned.
(Reporting by Richard Valdmanis and Caitlin Webber; Enhancing by Dan Whitcomb and Chris Reese)
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