The Department of Energy has canceled its latest tender for crude oil for the replenishment of the strategic petroleum reserve after oil prices moved higher than the DoE is comfortable with. Last month, the DoE purchased 2.8 million barrels at a price of $81 per barrel, which was higher than its self-imposed ceiling of $79 per barrel. It appears the department is unwilling to keep paying more for SPR oil, saying it was “keeping the taxpayer’s interest at the forefront”, per Bloomberg.
Despite the price volatility, the DoE said earlier this year it planned to refill the SPR by the end of the year. The bulk of the “refill” seems to be coming from canceled sales from the SPR rather than from buying additional volumes. The U.S.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: