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US DOE Seeks 1.5mbbld of Sour Crude for Delivery to SPR in September

OIL

The US Department of Energy is seeking to buy 1.5mbbl sour crude oil for delivery into the Strategic Petroleum Reserve in September, according to a document on March 21.

  • The purchase is part of solicitation announced on March 14 for 3mbbl of domestically-produced crude oil for the Bayou Choctaw, Louisiana site in August and September. Bids are due by April 2.
  • The DOE has purchased 29.61mbbl for the SPR to date at an average price of $76.57 with aims to buy at $79.0/bbl or less. US SPR volumes have recovered from a low of 346.76mbbl in July up to 362.3mbbl this week.
  • The US currently has more crude in the SPR than is required as a member of the Paris-based IEA.

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