US to move forward with scheduled 26M barrel sale from strategic oil reserve

The United States is moving forward with a congressionally required sale of oil from its Strategic Petroleum Reserve (SPR).

On Monday, the Energy Department advised that it would sell 26 million barrels from the oil reserve this year — a sale that was required by a 2015 budget law. 

The transaction comes as the Biden administration seeks to refill the reserve after releasing a record 180 million barrels last year to combat high gasoline prices.

The announcement also states that the Energy Department is more broadly seeking to avoid “unnecessary” sales that aren’t related to supply disruption. A department proposal to Congress led to the cancellation of congressionally mandated sales equivalent to 140 million barrels through the December 2022 omnibus bill, the announcement said.  

The Biden administration has also detailed plans to refill the reserve, saying it would seek to buy the oil when it is priced between $67 and $72 per barrel. 

President Biden’s move to release SPR barrels last year caused controversy among Republicans, who accused the administration of raiding an important resource for political gain. The GOP-led House recently passed two bills aimed at limiting SPR withdrawals. 

The administration, however, has defended the sales, saying that presidents of both parties have used the reserve to address oil supply disruptions.

It has also pointed to projected savings. The Treasury Department found that Biden’s use of the SPR, alongside coordinated releases from other countries, could have saved consumers between 17 cents to 42 cents at the pump if companies passed along the full value of the savings. 

— Updated at 3:50 p.m.