‘Just Kidding’ – US Denies Plan To Refill SPR With Sub-$80 Oil

• In March, the U.S. government authorized the release of 1 million bpd of oil from the SPR over a period of six months.
• Earlier this week, there were rumors that the U.S. administration may start refilling the SPR when oil prices fall below $80.
• The U.S. Department of Energy has quashed those rumors, asserting that there is no trigger price and the SPR won’t be refilled any time soon.

The U.S. Administration will not rush into buying crude to refill the Strategic Petroleum Reserve (SPR), and purchase plans don’t contain any oil price below which the Administration will start buying the crude, the U.S. Department of Energy says.

In March, the Biden Administration authorized the release of 1 million barrels per day (bpd) from the SPR over a period of six months in a bid to lower oil prices and potentially boost domestic production through contracts with companies to purchase future oil at fixed prices. The SPR releases are a response to the disruption of global oil markets caused by Russia’s invasion of Ukraine and subsequent Western sanctions that have led to soaring oil and gas prices. The final plan called for a total release of 180 million barrels of crude from the SPR to counter the inexorable increase in oil prices amid a tight market.

Earlier this week, Bloomberg News reported that the Administration could start filling the SPR when oil prices drop below $80 per barrel. The timing is being considered as the Biden Administration looks to have U.S. oil production continue growing and prevent a plunge in oil prices, sources with knowledge of the matter told Bloomberg. – READ MORE