The Energy Department had considered canceling the 26 million-barrel fiscal 2023 operation after the Joe Biden administration sold a record 180 million barrels of reserves last year. But such a cancellation would have required congressional approval.
The sale announced Monday will likely temporarily push the stock below its current level of around 372 million barrels, its lowest volume since 1983.
The Energy Department said offers for the oil expire on February 28 and the crude will be delivered from April 1 to June 30.
The government auctioned off 180 million barrels of oil to combat fuel prices that had risen from Russia’s war on Ukraine and as global consumers exited the regime amid the COVID-19 pandemic.
The department said it will implement a three-part strategy to offset reserves over the long term, including buybacks with proceeds from emergency sales, returns of more than 25 million barrels of oil from previous trades, and working with Congress to prevent “sales unnecessary”.
Source: Ambito
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