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US Could Start Buying Oil To Refill SPR As Early As June
Oil Price ^ | 05/12/2023 | Svetana Paraskova

Posted on 05/12/2023 8:29:51 AM PDT by SeekAndFind

The U.S. Administration could begin crude oil repurchases to fill the Strategic Petroleum Reserve as early as in June, after a Congressionally-mandated sale from the SPR is completed next month, U.S. Secretary of Energy Jennifer Granholm said on Thursday.

“That congressionally mandated sale of 26 million barrels will be completed by June, and it's at that point where we will flip the switch and then seek to purchase,” Granholm said during a hearing in the U.S. House of Representatives.

In October of last year, the administration announced that it would repurchase crude oil for the reserve when prices were at or below about $67-$72 per barrel. The move would be dual purpose in that not only would it replenish the nation’s depleted reserves, but it would boost demand when prices were low instead of sending them into orbit at a time of regular prices.

Early on Friday, the U.S. benchmark, WTI Crude, was trading at around $70 per barrel and on track for a fourth consecutive weekly loss.

After selling more than 200 million barrels of crude from the SPR last year, the U.S. Administration has left the strategic petroleum reserve at its lowest level since 1983, at 372 million barrels of crude.

Earlier this year, Secretary Granholm had suggested that the Administration would start repurchasing crude oil for filling the SPR in the autumn of this year, and that the refilling could take years.

The Administration has previously said that repurchases could begin in the fourth quarter of this year, after maintenance is completed on two sites storing the nation’s crude oil reserves in Texas and Louisiana.

The Biden admin has been draining the SPR for six straight weeks...

(Excerpt) Read more at oilprice.com ...


TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events
KEYWORDS: gas; oil; petroleum; spr
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1 posted on 05/12/2023 8:29:51 AM PDT by SeekAndFind
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To: SeekAndFind

2 posted on 05/12/2023 8:30:22 AM PDT by SeekAndFind
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To: SeekAndFind

It is a shame we don’t have oil of our own, and therefore have to buy it.

Oh, wait….


3 posted on 05/12/2023 8:35:13 AM PDT by bk1000 (Banned from Breitbart)
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To: SeekAndFind

They are Still Emptying the SPR. Biden will run it dry trying to keep the price down.

In the words of the Oscar Winning Rabbit, “What a maroon.”


4 posted on 05/12/2023 8:41:06 AM PDT by MMusson
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To: MMusson

It seems to have worked in the mid-terms. Peoples’ votes are easily bought.


5 posted on 05/12/2023 8:42:57 AM PDT by ProtectOurFreedom (I don’t like to think before I say something...I want to be just as surprised as everyone else…)
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To: SeekAndFind

Smart, smart to buy into summer driving times. Everyone likes higher prices. This does help domestic production, and I mbs and crew to do another production cut.


6 posted on 05/12/2023 8:43:15 AM PDT by Theoria
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To: SeekAndFind

It’s the time to refill the Strategic Petroleum Reserves.

The price of oil is down to $70.50 and the U.S. is producing more than 12,000,000 barrels a day.


7 posted on 05/12/2023 8:43:18 AM PDT by Round Earther
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To: SeekAndFind

We are paying $4.99 at the cheapest gas stations in Phoenix (QT). That is NOT “low”.


8 posted on 05/12/2023 8:46:07 AM PDT by Dr. Sivana ("If you can’t say something nice . . . say the Rosary." [Red Badger])
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To: SeekAndFind

Or not.


9 posted on 05/12/2023 8:51:29 AM PDT by VTenigma (Conspiracy theory is the new "spoiler alert")
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To: bk1000

Glad we have someone in place who understands the market.

But as you said, “Oh! wait”...

Who on earth with a brain would ever operate this way? I give up trying to figure it out...


10 posted on 05/12/2023 8:56:51 AM PDT by Thank You Rush
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To: Dr. Sivana

“We are paying $4.99 at the cheapest gas stations in Phoenix”

Here in Benson on Arizona’s east coast, It was $3.59 at Love’s yesterday.
I think I read that y’all get your gas from California and we get ours from El Paso and that is the difference.
Or maybe the Hobbs Effect has not hit here yet.


11 posted on 05/12/2023 8:58:51 AM PDT by Tupelo (A House Divided Against Itself Cannot Stand)
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To: SeekAndFind

Sell cheap, buy high with borrowed money.


12 posted on 05/12/2023 9:01:28 AM PDT by glorgau
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To: Theoria

It will drive prices up because Uncle Sugar will be using our tax money to buy up more crude and taking it out of the market. Destructive economic policy again.


13 posted on 05/12/2023 9:02:19 AM PDT by Texas resident (We are living through Barak's fundamental transformation)
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To: Thank You Rush

Oil is now within the $67 to $72 price target, and the SPR can buy oil at a lower price than what previous SPR oil was sold.


14 posted on 05/12/2023 9:04:33 AM PDT by Round Earther
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To: SeekAndFind

After the bastard Joe Biden drained the SPR of all of the inexpensive oil purchased during Donald Trumps term.He’s going to refill it with oil that going to be top dollar.

Question is is this going to be oil from U.S. wells or is it coming from foreign sources?


15 posted on 05/12/2023 9:23:14 AM PDT by puppypusher (The world is going to the dogs.)
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To: SeekAndFind

That plus the “summer driving season” will solve the “problem” of “gas prices are too low”.

/s


16 posted on 05/12/2023 9:38:32 AM PDT by lightman (I am a binary Trintarian. Deal with it!)
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To: Tupelo

No, Phoenix area is always higher. I rarely go towards Tucson, but when I do, I fuel up midway there.


17 posted on 05/12/2023 9:39:00 AM PDT by Dr. Sivana ("If you can’t say something nice . . . say the Rosary." [Red Badger])
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To: SeekAndFind

Listen Folks: The ONLY reason gas prices have dropped at the pump is because Joey drained the strategic reserves that President Trump had to refill w/crazy nancy fighting him all the way. Let us not forget it was obama that drained our reserves. obama is at the bottom of so much of our problems.


18 posted on 05/12/2023 10:08:13 AM PDT by Son-Joshua ( )
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To: Round Earther

“”Oil is now within the $67 to $72 price target, and the SPR can buy oil at a lower price than what previous SPR oil was sold.””

Then clearly, someone goofed! Something done right?

It sounds like the old story of the guy who didn’t get the price he wanted for hay so he bought a bigger truck.


19 posted on 05/12/2023 10:09:44 AM PDT by Thank You Rush
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To: Dr. Sivana

What’s the use of filling it up when the next democrat in the WH sees it as his own?


20 posted on 05/12/2023 10:10:21 AM PDT by DIRTYSECRET
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