U.S. plans to buy back 60 mln barrels for emergency oil stockpile - report

The United States will take bids this fall to buy back 60 million barrels of crude oil for the U.S. Strategic Petroleum Reserve, the first step in replenishing the stockpile after a record-sized release this spring, the Department of Energy said.

The administration of U.S. President Joe Biden had announced on March 31 a release of a record 180 million barrels from the stockpile to help tame runaway energy prices, CNN reported.

“As we are thoughtful and methodical in the decision to drawdown from our emergency reserve, we must be similarly strategic in replenishing the supply so that it stands ready to deliver on its mission to provide relief when needed most," said U.S. Secretary of Energy Jennifer Granholm in a press release detailing the plan.

The call for bids on the initial 60 million barrels "will take place in the fall of 2022 to secure delivery in future years when prices are anticipated to be significantly lower than they are today," according to the press release.

A U.S. source told Reuters that delivery of the first batch of the oil would likely start after the 2023 fiscal year, depending on market conditions.