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US Flexible With SPR Ahead of Price Cap

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When it comes to strategic oil stocks, the Biden administration is keeping some in reserve — which could help it cope with potential price spike in coming months. The US Department of Energy (DOE) this week announced the sixth installment of emergency stock sales this year, offering 10 million barrels of oil from the Strategic Petroleum Reserve (SPR) for delivery in November. That means the administration has some 15 million barrels left of the 180 million authorized by President Joe Biden in March as market players begin to nervously eye the G7’s implementation of a “price cap” on Russian oil slated to come into effect in early December. Officials originally envisioned selling the 180 million barrels over six months at a rate of up to 1 million barrels per day. But not all of the oil on offer in June and July was bought up, and officials now appear to be extending the timeline, with planned deliveries in November and further authorized volumes still available. There could yet be more, with an agency official saying this week that the administration is tracking global supply, the types of crude refiners need, and what the SPR has available when offering up barrels.

Topics:
Policy and Regulation, Oil Supply, Oil Inventories
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