On Friday, the U.S. Energy Department stated that it has begun to purchase oil to replenish the reserves for the Strategic Petroleum Reserve.

Newsmax reports that this is the first purchase for the SPR since the release of 180 million barrels earlier this year.

A senior White House official said they will purchase up to 3 million barrels for February.

President Biden announced the release of 180 million barrels in March, right after the Russian invasion of Ukraine in February. This was meant to help combat the rising gas prices that were expected, which manifested in the months following the Russian invasion of Ukraine.

The sale of so many barrels from the SPR dropped the total amount in the Reserve to 380 million barrels. This is the lowest level since 1984. Many became concerned by how much the reserve had dropped, and they were less pleased that it was so perilous.

Newsmax reported that an official at the White House said the following:

“We’ll be releasing a solicitation to purchase 3 million barrels of oil for delivery in February of next year, 2023,”

According to the White House, contracts will be awarded to energy companies until January 13.

The same official said the following:

“This approach will lock in a price upfront when companies submit their bids,”

The White House stated that it would buy back barrels when prices were at or below $67-$72 per barrel. This is slightly below the $75 per barrel oil recently traded on the futures market.

The official stated the following:

“It’d be very useful to put this notice out now and to see what the market would provide in terms of interest and at what price level for that,”

The Energy Department stated that it sees this as an opportunity for the American people to buy back oil at a great price for the Strategic Petroleum Reserve. They see it as:

“an opportunity to secure a good deal for American taxpayers by repurchasing oil at a lower price than the $96 per barrel average price it was sold for, as well as to strengthen energy security.”

Despite the buyback announcement, the release of so many barrels of oil from the SPR means that it will remain dangerously low compared to where it typically stands. This could still create problems for the oil markets in the future.

Selling Us Out: White House Announces INSANE Oil Buy-Back To Replen...