Biden Administration Buys Oil for Emergency Reserve Above Target Price

The Biden administration on Wednesday awarded contracts to buy 2.8 million barrels of oil for the government's emergency reserve for more than $81 a barrel, $2 above the target purchase price.

(Reuters) — The Biden administration on Wednesday awarded contracts to buy 2.8 million barrels of oil for the government's emergency reserve for more than $81 a barrel, $2 above the target purchase price.

The Department of Energy (DOE) said it will spend $225.6 million to buy oil to refill the Strategic Petroleum Reserve (SPR) from Atlantic Trading & Marketing, Macquarie Commodities, and Sunoco Partners Marketing & Terminals. The oil is set to be delivered in September.

The price is about $81.32 a barrel, based on the DOE announcement. The energy department has previously said it aims to purchase at a price of $79 per barrel or below, less than the average of about $95 it received for 2022 emergency SPR sales.

A spokesperson for the Department of Energy said the average purchase price for Wednesday's and earlier purchases together remained below $79.

DOE has already purchased 26.28 million barrels of oil for the SPR for an average price of $76.47, as well as accelerated nearly 4 million barrels of exchange returns.