Oh bredred from the origin of the core of your being deception to coninuing to be o stupidy short sighted.
Just like the source of your pixie dust enchantment.
Changing strategy
Since selling 180 million barrels in 2022 at a cost of around $95/b -- a sale made to ward off potential price spikes following Russia's invasion of Ukraine, which the Department of Treasury now argues reduced US gasoline prices by as much as 40 cents/gal -- the Biden administration has purchased back 32.3 million barrels at an average price of $76.98/b in a flurry of scheduled purchases throughout 2023 and early 2024.
In early April 2024, the DOEcancelled two proposed solicitationsfor 1.5 million barrels each, to be delivered to the Bayou Choctaw storage site in September, after price increases and concerns about demand effects of steady SPR refills moved prices beyond the administration's stated $79/b target. In late March, the DOEwent ahead with a purchaseof 2.8 million barrels at an average price of $81/b, removing language about the $79/b target from its announcement.
In the following week, Iran accused Israel of conducting an airstrike on its consulate building in Syria, and a previously sanguine global oil market began to tighten around concerns of a larger regional conflict in the Middle East.
"As always, we monitor market dynamics to remain nimble and innovative in our successful replenishment approach to protect this critical national security asset," a DOE spokesperson said in an email April 3.
Replenishment nearly complete
Despite the brief refill pause in April, DOE has nearly followed through on its commitment to return all 180 million barrels it sold in 2022. Besides the direct purchases, the agency is no longer required to sell more than 140 million barrels of crude through 2027 that would have been congressionally mandated prior to a 2022 legislative fix that eliminated SPR sales unrelated to supply disruptions.
"The US SPR has added 12.5 million barrels since the beginning of 2024, and an additional 18.4 million barrels are anticipated to be refilled by October 31, 2024," said S&P Global Commodity Insights analyst Rishabh Sharma. "The latest proposal for the Big Hill SPR storage site aligns with the monthly cadence of solicitations observed for that site since October 2023.
"The maximum purchase price for barrels scheduled for delivery in October 2024 is capped at $79.99/b," Sharma said. "With the exception of the September 2024 purchase, which was made at a price of $81.32/b , all other purchases this year have been below $80/b."
To date, the DOE has accounted for about 176 million barrels, which will increase to over 179 million if the October Big Hill purchase is completed.
https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/050724-us-doe-solicits-33-million-barrels-of-crude-for-spr-in-resumption-of-refill-strategy
