US Announce Final SPR Release from 180mn bbl Commitment

The US Department of Energy has announced the notice of sale of up to 15mn bbls of crude oil from the SPR. It fulfills the final portion of Bidens commitment to release 180mn bbls from the SPR March 31, 2022.

• The Department of the Treasury estimates that SPR releases this year, along with coordinated releases from international partners, have reduced gasoline prices by up to about 40 cents per gallon compared to what they would have been absent these drawdowns.
• DOE plans to release up to 3 million barrels of sour crude oil and up to 12 million barrels of sweet crude oil for a total of 15 million barrels, with deliveries from December 1, 2022 to December 31.
• Today, DOE finalized a rule allowing fixed-price forward purchases of crude oil to replenish the SPR at lower prices than the barrels sold.
• US officials have commented today in televised interviews that the Biden Administration still leaves the possibility of further SPR releases - on top of the 180mn bbl commitment - on the table.