The administration cites high oil prices for the delay in refilling low stock.
The Department of Energy (DOE) announced it has canceled two upcoming oil purchases that would go toward restocking the U.S. Strategic Petroleum Reserve (SPR). Officials postponed the purchases due to rising oil prices, which have reached a five-month high of $90 per barrel.
“We will not award the current solicitations for the Bayou Choctaw SPR site and will solicit available capacity as market conditions allow,” Energy officials stated, adding that they “will continue to monitor market dynamics” for future refills. The department added that it would wait to refill the SPR once prices reach below $79 per barrel.
President Joe Biden withdrew nearly 300 million barrels from the 600 million barrel SPR in 2022 to reduce gas prices. In 2023, the Energy Department added 32 million barrels back to the stockpile but is still far from reaching a total refill of the SPR. The now-canceled purchases would have added 3 million barrels.
As the Lord Leads, Pray with Us…
- For wisdom for U.S. energy officials as they gauge the oil market and pricing to restock the Strategic Petroleum Reserve.
- For the president and members of his administration to seek God’s direction as they make decisions regarding the nation’s resources.
Sources: Washington Examiner, The Hill, MSN
