US Delays start of SPR replenishment, Oil Too ExpensiveWell go figure....
Bids received by the US to buy back the first 3mm bbls of SPR crude to start refilling the SPR were too expensive, or of the wrong grade. They will delay the repurchase for another time thinking it will be cheaper.
Personally, I think now is their best shot at getting the lowest price as crude markets are in contango. Oil for delivery now is cheaper, but oil for future delivery is more expensive. The market is expecting higher prices in the future.
Perhaps they might just replenish the Strategic Petroleum Reserve by purchasing 200mm bbls in paper oil futures, and hang the contract in an envelope tied to a valve at the salt caverns.
https://www.bloomberg.com/news/articles/2023-01-06/us-rejects-oil-offers-in-first-attempt-to-replenish-stockpiles?utm_source=website&utm_medium=share&utm_campaign=twitter&sref=yYYRek8e&leadSource=uverify%20wall