DOE Increases SPR Inventory and Sets Price Cap
- U.S. adds 2.4 million barrels of sour crude to Strategic Petroleum Reserve in July
- Reserve now at highest levels since December 2022
- Inventories still 42.1% below January 2021 levels
- DOE awards contracts for purchase of 4.5 million barrels later this year
- Price of oil weakening in July
- Purchase price capped at $79.99/bbl
The U.S. Department of Energy has added 2.4 million barrels of sour crude to the Strategic Petroleum Reserve in July, bringing the total inventory to its highest level since December 2022. The reserve now holds 375.1 million barrels, with 231.7 million of sour crude and 143.4 million of sweet crude. This marks the seventh consecutive month of stockpile increases under the Biden administration. Despite the increase, inventories remain 42.1% below January 2021 levels. The DOE has awarded contracts for the purchase of 4.5 million barrels to be delivered later this year, with a price cap set at $79.99/bbl. Oil prices have weakened in July, falling from $83.88/bbl on July 3 to $77.16/bbl on Friday.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about the U.S. Strategic Petroleum Reserve, including data from the Department of Energy, details on recent purchases, and the reasoning behind them. It also includes relevant context about the Biden administration’s actions to restock the reserve and the price of oil. The source is reputable and the reporting is factual.
Noise Level: 2
Noise Justification: The article provides relevant information about the U.S. Strategic Petroleum Reserve and its recent additions of sour crude oil, as well as the current levels and historical context. It also mentions the Biden administration’s efforts to restock the reserve after tapping it during the pandemic and Russia’s invasion of Ukraine. The article is focused on the topic and supports its claims with data from the Department of Energy. However, it lacks analysis or exploration of long-term trends or consequences of decisions. It also does not offer actionable insights or new knowledge for readers.
Public Companies: ExxonMobil (XOM)
Private Companies: Macquarie Commodities Trading
Key People: Joe Biden (President), Steve Cronin (Reporter), Michael Kelly (Editor)
Financial Relevance: Yes
Financial Markets Impacted: Oil prices and related companies
Financial Rating Justification: The article discusses the U.S. adding crude oil to its Strategic Petroleum Reserve, which impacts global oil supply and prices, affecting financial markets and companies involved in the oil industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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