U.S. to sell up to 10 mln bbls of oil from SPR for Nov. delivery (updated)

Sherritt International

19/09/2022 20:24

(Adds background, comment from U.S. official)
    By Timothy Gardner and Arathy Somasekhar
    WASHINGTON/HOUSTON Sept 19 (Reuters) - The U.S. Energy
Department said on Monday it will sell up to 10 million barrels
of oil from the Strategic Petroleum Reserve, for delivery in
November, extending the timing of a plan to sell 180 million
barrels from the stockpile to tame fuel prices. 
    President Joe Biden's plan announced in March of the largest
release of oil from SPR in history had aimed to sell 180 million
barrels by the end of October. So far, only 155 million barrels
have been sold and the next sale will bring the total to 165
million barrels, the department said.   
    The sale will be of oil low in sulphur, known as sweet
crude, from the SPR's sites in Big Hill, Texas and West
Hackberry, Louisiana. Contracts will be awarded no later than
Oct. 7. The SPR holds oil in heavily-guarded former salt caverns
along the Gulf of Mexico coast.
    There is no date set for selling a full 180 million barrels.
"As we look to the future, I think what you're seeing right now
is us evaluating the current market dynamics and making sure
that our releases align with the needs," a senior Biden
administration official told reporters in a call about the sale.
    High gasoline prices have been a vulnerability for the Biden
administration and the deliveries will take place in the same
month as the Nov. 8 midterm elections in which the president's
fellow Democrats hope to keep control of Congress. U.S. gasoline
pump prices have fallen from above $5.00 a gallon in June to
about $3.68 today.
    The Energy Department has said for months that sales from
the SPR had slowed at times this summer due to the need to add a
chemical to the crude during extremely hot weather.

 (Reporting by Timothy Gardner in Washington and Arathy
Somasekhar in Houston; Editing by Chizu Nomiyama and David
Gregorio)
 ((timothy.gardner@thomsonreuters.com; +1 202 380-8348 (Twitter
@timogard); Reuters Messaging:
timothy.gardner.thomsonreuters.com@reuters.net))