The US government has awarded contracts for the purchase of 6 million barrels of crude oil for the strategic Petroleum Reserve.
The deliveries will run to 1.5 million barrels per month from February 2025 through May 2025, bringing the total purchased since 2022 to more than 180 million barrels.
“This follows the historic release from the SPR to address the significant global supply disruption caused by Putin’s war on Ukraine and help keep the domestic market well supplied, ultimately helping to bring down prices for American consumers and businesses,” said the Department of Energy in a press release.
The contracts were awarded at a the price of $70 per barrel. The strategic Pteroleum reserve releases of 2022 reduced gasoline prices by 40 c per gallon, according to the US Department of Treasury.
The move comes as Opec is scheduled to meet on Wednesday.
By Staff
