Continued Efforts to Replenish Crude Levels Amid Global Tensions
- U.S. added 2.9 million barrels to the Strategic Petroleum Reserve in September
- September’s additions include purchases and returns from DOE’s exchange program
- SPR holdings are about 40% below levels when Biden took office in January 2021
- Additional contracts awarded for delivery of sour crude in October, November, and December
The U.S. has added 2.9 million barrels of oil to its Strategic Petroleum Reserve (SPR) in September, marking the ninth monthly increase this year. The stockpile now holds 382.6 million barrels, the highest monthly total since early December 2022, according to Department of Energy data released on Monday. The reserve currently contains 143.3 million barrels of sweet crude and 239.2 million barrels of sour crude. All September additions were sour crude, as per DOE data. The Biden administration has been conducting a series of purchases to replenish the reserve, with recent contracts awarded for delivery of 4.5 million barrels of sour crude in October, November, and December to Bayou Choctaw storage in Louisiana and about 2 million barrels per month to Bryan Mound, Texas site from January through March. Despite these efforts, SPR holdings remain 40% lower than when Biden took office in January 2021, with regular releases aimed at addressing rising energy prices during the Covid-19 recovery and supply disruptions following Russia’s invasion of Ukraine.
Factuality Level: 10
Factuality Justification: The article provides accurate information about the U.S. Strategic Petroleum Reserve, cites a reliable source (Department of Energy data), and is free from sensationalism or personal perspective.
Noise Level: 2
Noise Justification: The article provides relevant information about the U.S. Strategic Petroleum Reserve and its recent additions, with a focus on facts and data from the Department of Energy. It also mentions the Biden administration’s actions to replenish crude levels in the reserve. However, it lacks analysis or exploration of long-term trends or consequences.
Public Companies: Dow Jones & Co. (N/A)
Private Companies: Oil Price Information Service
Key People: Steve Cronin (Reporter), Michael Kelly (Editor)
Financial Relevance: Yes
Financial Markets Impacted: Oil prices and related energy stocks
Financial Rating Justification: The article discusses the addition of oil to the Strategic Petroleum Reserve, which can impact oil prices and thus affect financial markets and companies 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 text and it doesn’t discuss any major crisis or disaster.
Move Size: No market move size mentioned.
Sector: Energy
Direction: Up
Magnitude: Medium
Affected Instruments: Commodities
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