US Flexible With SPR Ahead of Price Cap

Copyright © 2022 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.

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.

Policy and Regulation, Oil Supply, Oil Inventories
Wanda Ad #2 (article footer)
Traders increasingly believe Russia will fail to keep all its oil flowing once EU import bans take effect in coming months.
Thu, Sep 29, 2022
Indonesia is hoping that improved fiscal terms and recently introduced incentives will attract foreign investors and lead to an increase in exploration.
Fri, Sep 30, 2022
A FERC commissioner and industry executives want regulators to take a more active role in addressing challenges posed to New England by extreme winters.
Fri, Sep 30, 2022