US DOE Offers 11-M Bbl Crude Oil from Strategic Reserve
US Department of Energy (DOE) is offering 11-M bbl of Crude Oil for sale from the nation’s SPR (Strategic Petroleum Reserve) ahead of sanctions on Iran that may reduce global supplies of Crude Oil
The delivery period for the proposed sale of lower grades of Crude will be from 1 October through 30 November according to Monday’s notice.
The US Treasury has introduced financial sanctions against Iran which, beginning in November, also target the petroleum sector of OPEC’s 3rd-largest producer.
The sale is designed to show The Trump Administration is taking measures to restrain energy price increases ahead of the sanctions.
- NYMEX WTI Crude Oil finished at +0.9% to 66.51 bbl Monday
US President Donald Trump complained this year that Crude Oil prices are “artificially very high” and a potential release from the SPR, ahead of the US midterm elections in November, this act was widely seen as a way to bring relief to motorists who have seen gasoline prices jump in the past year. Gasoline prices could dip due to seasonal factors.
Earlier this year, the DOE sold 5.2-M bbl of Crude Oil from the SPR to five companies including top refiners Valero Energy Corp (NYSE:VLO) and Phillips 66 (NYSE:PSX).
SPR Crude Oil samples are not available prior to deliveries, and offers for the latest sale are due at 2:00p CDT 28 August the notice said.
The latest offer for sale includes the low grade sour Crude Oil from Bryan Mound, in addition to West Hackberry and Big Hill, the notice said.
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