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Tuesday, January 31, 2023

US will buy back crude oil to recover its reserves

Department of Energy The United States announced this Friday that it would begin repurchasing crude oil to replenish its strategic stockpile.are at their lowest level since 1984 following the strategy of Mass sale of barrels to try to lower the price of gasoline in country. The office gives companies that want to participate in the buyback till December 28 to submit their proposals. In total, Energia needs about 3 million barrels to be delivered in February.

In October, the administration of US President Joe Biden announced its intention to buy back the oil it had begun to sell as a strategy to reduce the impact of the Russian invasion of Ukraine on gasoline prices once prices return to normal. But between 67 and 72 dollars. per barrel.

Thus, Department of Energy at a low price “will be able to buy barrels to strengthen its strategic reserve “An average of $96 for which they were sold,” the bureau said in a statement. The barrels will be bought at a fixed price, so the agreed amount will not change if market conditions change before February.

In March, the US government announced it would sell 180 million barrels of crude oil from its strategic reserves to try to reduce the average price of the fuel, which reached a record high of more than $5 a gallon in June. , which was inspired by the war in Ukraine. , In October, Biden decided to sell 15 million barrels of strategic reserves (the last of the promised 180 million) after the OPEC+ alliance, led by Saudi Arabia and Russia, cut its production by 2 million barrels per day (mbd). decided to downsize. ), this is the biggest cut in oil supply since May 2020.

Since then, prices in the country have dropped significantly, although some Republican representatives accused Democrats of using strategic oil reserves for political purposes because of the proximity of the midterm elections in November.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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