Biden Seeks Six Million More Barrels for Reserve as Prices Drop

Ari Natter
·1-min read

(Bloomberg) -- The Biden administration is buying six million more barrels for the nation’s oil reserve as it continues to take advantage of a dip in prices to refill the depleted cache.

Most Read from Bloomberg

The Energy Department announced Friday two solicitations for the Strategic Petroleum Reserve - 1.5 million barrels for delivery in September and an additional 4.5 million barrels for October, November, and December. The bids, which are due later this month, will be for the reserve’s Bayou Choctaw site, which previously had been off line for maintenance.

The department has already purchased some 38.6 million barrels of oil for delivery to a separate reserve site as it slowly refills the more than 700 million barrel-strong cache. The reserve, the world’s largest, reached a 40-year low following the administration’s unprecedented drawdown of a record 180 million barrels in the wake of Russia’s invasion of Ukraine. It currently holds about 370 million barrels, according to Energy Department data, down from almost 600 million at the start of 2022.

The Energy Department’s move to buy comes as oil prices have declined 13% since early April, with crude oil futures trading at $75.50 at 12:20 in New York. The average purchase price for the oil bought by the department has been $77 a barrel, the agency said.

“DOE will continue to evaluate options to refill the SPR while securing a good deal for taxpayers, taking into account planned exchange returns and market developments,” the department said in a statement.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • RBA 'misled' Aussie mortgage payers before 'forcing' $18,000 misery: 'Never again'

    Australian mortgage holders are suffering through an $18,000 a year blow - but that's the reason interest rates should never drop to historic lows again.

  • ATO explains after Aussie's $5,300 disappointment: 'Confused'

    Many Aussies are being confronted with refunds much smaller than what was originally estimated.

  • An Intrinsic Calculation For Centaur Media Plc (LON:CAU) Suggests It's 49% Undervalued

    Key Insights Centaur Media's estimated fair value is UK£0.62 based on 2 Stage Free Cash Flow to Equity Centaur Media's...

  • I’m a Bank Teller: 4 Reasons You Should Withdraw Your Savings Right Now

    Roughly 95% of Americans have either a checking or savings account, according to the Federal Deposit Insurance Corporation (FDIC). For many people, a savings account is a great place to keep extra...

  • China central bank surprises by lending again at lower rates

    China's central bank surprised markets for a second time this week by conducting an unscheduled lending operation on Thursday at steeply lower rates, suggesting authorities are trying to provide heavier monetary stimulus to prop up the economy. The medium-term lending facility (MLF) operation comes after the central bank cut several benchmark lending rates on Monday, just days after a top leadership meeting, which had outlined other major reforms. The People's Bank of China (PBOC) issued 200 billion yuan ($27.5 billion) in one-year loans under its MLF at 2.30%, down 20 basis points from its previous MLF loan, the bank said in a statement.

  • Southwest scraps open seating, ending decades-long practice

    Southwest is ending its 50-year-plus practice of unassigned seating in a move to increase profitability amid activist investor pressures.

  • Some Investors May Be Worried About Air Products and Chemicals' (NYSE:APD) Returns On Capital

    If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

  • Kering's Half-Year Results Are Bleak

    Net profit was down a whopping 50%.

  • Calm inflation reading keeps the door open at Fed for September rate cut

    The Fed’s preferred inflation gauge had its slowest annual increase in more than three years, likely getting policy makers closer to the conviction needed to ease monetary policy.

  • Women VCs Make Gains in Tech Investing Amid Diversity Backlash

    (Bloomberg) -- Women and nonbinary venture investors have gained a foothold in the technology industry five years faster than advocacy group All Raise expected, but leaders say a national backlash to diversity, equality and inclusion initiatives threatens the progress that has been made. Most Read from BloombergTrump Risks Losing Voters He Needs With Loaded Attacks on HarrisParis Sticks to Olympics Opening Event Plans After Rail SabotageFed’s Favored Price Gauge Rises at Mild Pace, Spending Hold

  • Univest Financial Second Quarter 2024 Earnings: EPS Beats Expectations

    Univest Financial ( NASDAQ:UVSP ) Second Quarter 2024 Results Key Financial Results Revenue: US$71.3m (flat on 2Q...

  • Can I Live Off The Interest of a $1 Million Portfolio?

    Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a … Continue reading → The post How Much Interest Can You Earn on $1 million? appeared first on SmartAsset Blog.

  • Shares drop in US and Asia as AI stocks slide

    Tech stocks lead declines as investors reconsider rally fuelled by artificial intelligence.

  • Russia's Central Bank hikes interest rate as inflation soars

    Russia’s Central Bank on Friday raised its key lending rate to its highest level in more than two years to stem soaring inflation in an overheated economy hit by Western sanctions in response to Moscow's military action in Ukraine. “Growth in domestic demand is still outstripping the capabilities to expand the supply of goods and services,” the bank said in a statement. It noted that inflationary risks have been driven by high inflation expectations and changing trade terms as a result of “geopolitical tensions,” a reference to Western sanctions against Russia over its action in Ukraine.

  • The Best Cryptocurrency to Buy Now

    We recently compiled a report on the 10 Best Cryptocurrencies to Buy Now and in this article we will look at the best cryptocurrency to buy now. Cryptocurrency is one of the most volatile markets as it mainly drives its value from Bitcoin (BTC), which is the biggest cryptocurrency. Bitcoin has almost 54% share of the […]

  • CATL Supplier Lopal Said to Seek $200 Million for Indonesia Unit

    (Bloomberg) -- Jiangsu Lopal Tech Co. is considering raising about $200 million for its Indonesian unit as it ramps up local production of materials used in electric-vehicle batteries, according to people familiar with the situation.Most Read from BloombergTrump Risks Losing Voters He Needs With Loaded Attacks on HarrisParis Trains Hit By Sabotage Hours Before Olympics Kick OffHarris Just Showed Why Trump Is So Afraid of HerTrump Won’t Commit to Debate Until Harris Formally NominatedGreat Rotati

  • Analysis-Megacap stock selloff shows investor concerns about too much tech

    A tumble in the heavyweight stocks that have powered markets higher this year is highlighting Wall Street's vulnerability to any weakness in the Big Tech trade and causing concerns that over-stretched stocks are in for more turbulence. Disappointing quarterly reports from Tesla and Google-parent Alphabet sparked a crushing market selloff on Wednesday, with the tech-heavy Nasdaq Composite falling 3.6% in its worst day since October 2022. The benchmark S&P 500 slumped 2.3%, with the earnings reports causing concerns about upcoming results from the other big tech firms.

  • Lilly loses $120 billion in value as rival obesity drugs impress

    (Bloomberg) -- Eli Lilly & Co. is down more than $120 billion in market value and its status as the poster child of the weight-loss drug frenzy is under threat with at least two rivals posting encouraging developments for their obesity treatments.Most Read from BloombergTrump Risks Losing Voters He Needs With Loaded Attacks on HarrisHarris Just Showed Why Trump Is So Afraid of HerMarkets Tear Up Popular Trades That Reached ‘Stupid Levels’Stocks Caught in Tug of War Between Tech and Rest: Markets

  • Young Aussie reveals ‘frustrating’ reality of HECS debt: ‘Sold a lie’

    The 23-year-old said her HECS repayments don't even scratch the surface of indexation.

  • Take Five: Scores on the doors for Big Tech

    In Venezuela, voters head to the polls to elect a president. The steep selloff in markets in recent days is shining a spotlight on the Federal Reserve, which concludes its July monetary policy meeting on Wednesday.