Bids Sought for Louisiana Site Deliveries

  • DOE seeks bids for 6 million barrels of crude oil
  • Delivery next year to Strategic Petroleum Reserve
  • 1.5 million barrels per month to Bayou Choctaw site in Louisiana
  • Target price of $79 a barrel or less
  • Emergency sales in 2022 at an average price of $95 a barrel
  • Over 50 million barrels bought at $76 average price
  • SPR held 380.6 million barrels as of Sept. 13

The Department of Energy (DOE) has announced its intention to purchase 6 million barrels of crude oil for the Strategic Petroleum Reserve (SPR) at a target price of $79 per barrel or less. The DOE aims to replenish the reserve after emergency sales in 2022, which were conducted at an average price of $95 per barrel. So far, over 50 million barrels have been bought at an average price of $76. Bids are being sought for 1.5 million barrels to be delivered monthly to the Bayou Choctaw site in Louisiana from February through May.

Factuality Level: 9
Factuality Justification: The article provides accurate and relevant information about the Department of Energy’s bid for crude oil, the delivery schedule, target price, and the current SPR levels. It also includes data from a reliable source (U.S. Energy Information Administration). The information is presented objectively without any sensationalism or personal opinions.
Noise Level: 2
Noise Justification: The article provides relevant and factual information about the Department of Energy’s bid for crude oil delivery to the Strategic Petroleum Reserve, with no irrelevant or misleading content. It also includes specific details on the quantity, delivery schedule, and target price. However, it lacks analysis, exploration of consequences, scientific rigor, intellectual honesty, staying on topic, evidence, data, examples, and actionable insights.
Key People: Anthony Harrup (Author)

Financial Relevance: Yes
Financial Markets Impacted: Crude oil market
Financial Rating Justification: The article discusses the Department of Energy seeking bids for crude oil for the Strategic Petroleum Reserve, which impacts the price and supply of crude oil in the market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in this article.
Move Size: No market move size mentioned.
Sector: Energy
Direction: Up
Magnitude: Small
Affected Instruments: Commodities

Reported publicly: www.marketwatch.com