Biden Administration to Buy Three Million Barrels of Oil

Three million barrels, which represents roughly 15 percent of daily U.S. demand for oil, is quite small compared with the 180 million barrels the administration has sold from the reserve since the Russian war began. The Energy Department said the “repurchase is an opportunity to secure a good deal.” The administration said in October that it would begin replenishing the reserve at $67 to $72 a barrel.

Administration officials have argued that they wanted to sell high and buy low, a strategy that could now put a floor on falling oil prices, encouraging oil companies to keep production up or even increase it. That, in turn, could prevent another energy price jump next year, a major goal of the Biden team. Republican lawmakers and candidates have criticized Mr. Biden and Democrats for high inflation, especially for essential commodities like gasoline.

Article source: https://www.nytimes.com/2022/12/16/business/energy-environment/strategic-petroleum-reserve-oil-purchase.html