U.S. to sell additional 20 million barrels of oil from strategic reserve - Reuters

Summary

An oil storage tank and crude oil pipeline equipment is seen during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson

WASHINGTON, July 26 (Reuters) - The Biden administration on Tuesday said it will sell an additional 20 million barrels of oil from the Strategic Petroleum Reserve as part of a previous plan to tap the facility to calm oil prices boosted by Russia’s invasion of Ukraine and as demand recovers from the pandemic.

An oil storage tank and crude oil pipeline equipment is seen during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson

WASHINGTON, July 26 (Reuters) - The Biden administration on Tuesday said it will sell an additional 20 million barrels of oil from the Strategic Petroleum Reserve as part of a previous plan to tap the facility to calm oil prices boosted by Russia’s invasion of Ukraine and as demand recovers from the pandemic.

The administration said in late March it would release a record 1 million barrels of per day of oil for six months from the SPR, held in hollowed-out salt caverns on the coasts of Louisiana and Texas.

The United States has already sold 125 million barrels from the reserve with nearly 70 million barrels already delivered to purchasers, a senior administration official told reporters.

Register now for FREE unlimited access to Reuters.com Register

The SPR releases have been a "supply lifeline" to oil and refining companies as the industry continues to get oil production back online after declines during the peak of the COVID-19 pandemic, the official said.

The U.S. Energy Information Administration, the statistics arm of the Energy Department, said this month that U.S. oil output will rise to more than 11.9 million barrels per day (bpd) in 2022 and to nearly 12.8 million bpd in 2023, from about 11.2 million bpd in 2021. That compares with a record near 12.3 million bpd in 2019.

The United States will take bids in autumn to begin the process of buying back 60 million barrels of crude for reserve, a first step in replenishing the stockpile after the 180 million barrel release, the Department of Energy said in May. read more

The department will soon propose a rule to help put oil back into the SPR, where levels have sunk to 475.5 million barrels, the lowest since June 1985, by allowing it to enter forward contracts to purchase oil in future years at fixed, preset prices.

"What it means in practice is that producers would have more certainty about future demand for their product, and that would encourage investment in production today," a senior U.S. official told reporters.

Oil purchases to replenish the SPR will not be competing with demand for oil in the near term as they will likely take place after fiscal year 2023, an official told reporters.

A U.S. Treasury Department analysis showed that the SPR releases, along with coordinated releases from international partners, have reduced gasoline prices at the pump by as much as 40 cents per gallon, compared to what they otherwise would have been.

International oil prices fell on Tuesday on the SPR sale and on consumer concerns about inflation and interest rates. Brent crude futures settled at $104.40 a barrel, down 75 cents.

Register now for FREE unlimited access to Reuters.com Register

Reporting by Timothy Gardner, Doina Chiacu and Jeff Mason; Editing by Paul Simao, Andrea Ricci and Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.

U.S. to sell additional 20 million barrels of oil from strategic reserve - Reuters
Photo Credit: Reuters

Online home-selling platform launches in Florida - Business Observer

Realtors have some new competition in Florida. The real estate tech company Redfin has expanded its iBuying program RedfinNow into the state, initially focusing on the Tampa and O …

Read more here
Online home-selling platform launches in Florida - Business Observer

Anne Heche's 2001 Memoir ‘Call Me Crazy’ Books Selling for Around $750 Each After Her Death - Entertainment Tonight

Following Anne Heche's untimely death, renewed interest in her 2001 memoir, Call Me Crazy, has driven up the book's price among collectors and fans. The book -- published by Scrib …

Read more here
Anne Heche's 2001 Memoir ‘Call Me Crazy’ Books Selling for Around $750 Each After Her Death - Entertainment Tonight

The one-party versus third-party question: How brands tackle the challenges of selling via online platforms - EurekAlert

Researchers from University of Missouri and University of North Carolina – Chapel Hill published a new paper in the Journal of Marketing that examines the pricing and brand equity …

Read more here
The one-party versus third-party question: How brands tackle the challenges of selling via online platforms - EurekAlert

Christine Quinn Leaving Netflix’s Selling Sunset After 5 Seasons - E! NEWS

Watch : Selling Sunset's Christine Quinn Denies Faking COVID to Skip Reunion Selling Sunset is losing one of its original cast members—and arguably its biggest source of drama. C …

Read more here
Christine Quinn Leaving Netflix’s Selling Sunset After 5 Seasons - E! NEWS

Shoppers Are Now Demanding Home Depot Stop Selling This - Best Life

Most of us head to Home Depot with a list in hand or a project in mind. Unless you're really into home improvement, you probably aren't aimlessly wandering the aisles. The retailer …

Read more here
Shoppers Are Now Demanding Home Depot Stop Selling This - Best Life