U.S. crude oil purchased at a favorable price for the Strategic Petroleum Reserve

  • DOE awards contracts to buy 2.95 million bbl of U.S.-produced crude for the Strategic Petroleum Reserve
  • Contracts are for June delivery and based on a Jan. 31 solicitation
  • Crude oil purchased at an average price of $77.81/bbl
  • Acquisition price well below average sales price received in 2022
  • Eight companies responded to the request for proposals
  • Barrels to be delivered to the Big Hill SPR storage site in June

The Energy Department has awarded contracts to purchase 2.95 million barrels of U.S.-produced crude oil for the Strategic Petroleum Reserve. The contracts, based on a January 31 solicitation, are for delivery in June. The average price of the purchased crude oil is $77.81 per barrel, which is below the suggested price ceiling of $79 per barrel set by the government. This acquisition price is significantly lower than the average sales price of $95 per barrel received in various SPR sales in 2022. Eight companies responded to the request for proposals, and the barrels will be delivered to the Big Hill SPR storage site in June.

Companies Private: undefined, undefined
Key People: Tom Kloza (Reporter), Jeff Barber (Editor)

Factuality Level: 8
Factuality Just: The article provides specific information about the Energy Department’s contracts to buy crude oil for the Strategic Petroleum Reserve. It includes details about the price, delivery, and storage site. The information is sourced from the Oil Price Information Service, which is operated by Dow Jones & Co. Overall, the article appears to be factual and based on reliable information.
Noise Level: 7
Noise Just: The article provides relevant information about the Energy Department’s contracts to buy crude for the Strategic Petroleum Reserve. However, it lacks analysis of long-term trends or antifragility. It also does not hold powerful people accountable or explore the consequences of decisions. The article stays on topic and provides some evidence and data, but it does not offer actionable insights or solutions.
Financial Relevance: No
Financial Markets Impacted: No
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Just: This news article pertains to financial topics as it discusses the purchase of crude oil for the Strategic Petroleum Reserve. There is no mention of an extreme event in the article.

Reported publicly: www.marketwatch.com