The US Department of Energy announced that it will sell 18 million barrels of oil from Strategic Petroleum ReserveThe offers from companies to buy them will be on the fourth of next January, within the framework of the previously announced release of reserves with the aim of calming fuel prices.
The announcement of the sale was expected, after the Biden administration announced it in the context of increasing the release of another 50 million barrels of reserves, in coordination with other oil-consuming countries, including China, India and South Korea. The Energy Department said last week that the sale was scheduled to be announced on December 17.
The administration is trying to address the concerns of American consumers about rising fuel costs and inflation as their travel activity increases, but President Joe Biden does not have enough tools to deal with the price of crude oil trading in the global market.
By making the sale, the Department of Energy is speeding up an auction that Congress authorized in 2018 to fund the government.
The ministry said the delivery of oil to companies from the Strategic Petroleum Reserve, which is oil stored in a series of caves on the coasts of Texas and Louisiana, will take place from February 1 to March 31.
The ministry also plans to lend up to 32 million barrels of oil from the Strategic Petroleum Reserve to companies that will be obligated to return the crude at interest.
The ministry said that the first batch of this swap will be 4.8 million barrels with Exxon Mobil Corp., the largest American oil company.