Baytex Energy Corp T.BTE

Finally Biden is buying back oil

[andy604]

US buys 3.2 million barrels of oil for SPR, solicitation for more next week

 

June 30, 2023 3:05 PM  Reuters0 Comments

 

 

 

 

The U.S. Energy Department bought 3.2 million barrels of oil for the Strategic Petroleum Reserve, it said on Friday, as the Biden administration slowly refills the stash after sales last year pushed its level to the lowest since 1983.

The Biden administration will also announce on July 7 another solicitation for additional purchase of an unspecified amount of oil for the reserve to be delivered in October and November, the department said.

The administration has now bought 6 million barrels for the reserve this year after it conducted a record sale of more than 180 million barrels to fight high oil prices after Russia invaded Ukraine. It hopes to buy at least 12 million in total this year for the reserve. The Energy Department announced the solicitation on June 9 for the purchase completed on Friday. It said the purchase price averaged $71.98 per barrel, lower than the average of about $95 per barrel it was sold for last year.

The companies selling more than $230 million in oil to the SPR this time were:

Atlantic Trading & Marketing – 500,000 barrels

Macquarie Commodities Trading US LLC – 1.5 million barrels29dk2902l

Shell Trading (US) Company – 600,000 barrels

Sunoco Partners Marketing & Terminals LP – 600,000 barrels.

[uwebb429]

The 180 million number is another one of those lies that if it gets repeated often enough, the U.S. government hopes voters will start to believe it. The reality is that since July 2021, 273 million barrels have been removed from the SPR. Buying 3 or 6 million barrels to put back in the SPR makes for a good news story but it is insignificant compared to what was removed.   https

[jleer42]

Agreed, the minimal buybacks is for optics and the media only. If they really re-purchased what they sold WTI would spike along with pump prices. The whole point was to keep gasoline prices down and get Dems re-elected, they are not going to the reverse now. Also, they could never fund a large repurchase, most of the money from sales went into general revenue and it's gone. Previously mandated