US Sells 10.2 Million Barrels of Reserve Crude After OPEC+ Production Cuts

Eight companies were awarded a total of 10.15 million barrels of low-sulfur oil, just a shade above what was offered from the Strategic Petroleum Reserve in the previous release, according to data posted on the Energy Department’s website. Of that, 1 million could be set for export markets, data showed.

The government’s sale comes after a surprise move by the OPEC+ alliance that will effectively reduce global crude supplies by roughly 1 million barrels a day. The Biden Administration has expressed disappointment in the cartel’s decision and is hoping the crude rally won’t cause domestic fuel prices to surge just before mid-term elections.

The Energy Department’s announced plans to distribute 180 million barrels from the strategic stockpile shortly after Russia’s late-February invasion of Ukraine.

Other successful bidders in this latest tender included Atlantic Trading & Marketing Inc., Equinor Marketing & Trading, Macquarie Commodities Trading US LLC, Motiva Enterprises LLC, Phillips 66, Shell Trading (US) Company and Valero Marketing and Supply Company.

Crude oil deliveries will take place from the West Hackberry, Louisiana, and Big Hill, Texas, SPR storage sites in November, according to the statement.

Table shows companies awarded and sale volumes in tender (in bbls):