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Page added on March 29, 2018
US Dept. Of Energy sells 5.2 mln barrels of oil from SPR
The U.S. Department of Energy sold about 5.2 million barrels of oil from the Strategic Petroleum Reserve (SPR) to five companies including top refiners Valero Energy Corp and Phillips 66, according to a notice on Wednesday:
* Phillips 66 was sold the most amount of oil – about 2.3 million barrels – and Valero Marketing and Supply Co was sold 900,000 barrels.
* Other winners include commodities trader Trafigura AG, which was sold 1 million barrels, refiners Motiva Enterprises and Marathon Petroleum Corp which were sold 600,000 barrels and 400,000 barrels respectively.
* The oil was sold at an average price of about $63 a barrel.
* The Department of Energy said earlier in March it will sell 7 million barrels of sweet crude oil from the country’s petroleum reserve as it complies with a 2015 law to help fund the federal government.
* As domestic oil output has grown with the fracking revolution, lawmakers have increasingly seen sales from the reserve as a way to help fund the government.
9 Comments on "US Dept. Of Energy sells 5.2 mln barrels of oil from SPR"
twocats on Thu, 29th Mar 2018 7:38 pm
I’d like to think they really aren’t that dumb – that they have some actual good reason to sell out of the SPR other than “those frack boys got us covered from now until eternity.” but considering all the hype its hard to blame them.
Duncan Idaho on Thu, 29th Mar 2018 7:52 pm
Its the Trump Administration.
This idiot has been bankrupt 4 times.
(well maybe 6))
https://www.washingtonpost.com/politics/2016/live-updates/general-election/real-time-fact-checking-and-analysis-of-the-first-presidential-debate/fact-check-has-trump-declared-bankruptcy-four-or-six-times/
MASTERMIND on Thu, 29th Mar 2018 9:02 pm
The U.S Sold Contaminated Crude Oil From Its Strategic Reserve—Report
https://www.popularmechanics.com/technology/infrastructure/a19634690/us-poisoned-crude-oil/
Our oil is junk in our reserves!
rockman on Thu, 29th Mar 2018 10:42 pm
OK, going to sell about 1% of the SPR to cover about 0.01% of the 2018 US budget. Anyone else have any more meaningless news to report?
The D.C. bullshit spinners are so lucky the average voter can’t do simple math. LOL.
deadly on Thu, 29th Mar 2018 11:22 pm
Can’t sell all of the oil in the SPR, the price would crash.
5,200,000 times 64 is 332,800,000 USD.
Probably sold to pay the interest on the debt to Goldman Sachs and JP Morgan.
The money has to be in the right hands and Warshington does make sure of that.
BobInget on Fri, 30th Mar 2018 11:41 am
We estimate that OECD inventories for the first time in 3.5 years have fallen below normal after February’s massive inventory draw of 46 million barrels (6x the normal rate). The global oil balance remains in a sharp deficit despite (ALLEGED) gains in US production.
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We estimate that OECD inventories for the first time in 3.5 years have fallen below normal after February’s massive inventory draw of 46 million barrels (6x the normal rate). The global oil balance remains in a sharp deficit despite gains in US production.
BobInget on Fri, 30th Mar 2018 12:07 pm
Exactly, Rockman.
Rather then allowing fuels to gradually increase in
price, SPR sales attempt to give a false impression of ‘plenty’. Well, last week we burnt and exported, as I predicted, 20.7 M B p/d.
In a world where we are consuming SEVEN times
more oil then is being ‘discovered’, we are in deep doo.
Only a LT mega inflation can hope to make a dent
in US debt. Whats more, the higher we jack up interest rates to attract foreign ‘investments’, the worse US economy strangles for lack of investment. Anyone who has used one credit card to pay-down another, will know that.
The problem is the same now as when we had $100. oil. EXCEPToil company shares are priced for $30 a Barrel. Deep water (where all the volume is) drilling won’t become profitable till $85. becomes the norm for at least 3 months.
IOW’s maybe NEVER.
ON TOPIC:
Here’s something you may not know.
Some of the companies that bought crude from the US Strategic Petroleum Reserve last year claim that the oil contained unacceptably high levels of hydrogen sulphide. Raises some quality questions about the remaining 663 million barrels in the SPR.
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Some of the companies that bought crude from the US Strategic Petroleum Reserve last year claim that the oil contained unacceptably high levels of hydrogen sulphide. Raises some quality questions about the remaining 663 million barrels in the SPR. #oott https://reut.rs/2GC5lLb
Boat on Sun, 1st Apr 2018 9:35 pm
Bob
Wood McKinsey disagrees.
https://oilprice.com/
Boat on Sun, 1st Apr 2018 9:38 pm
The US has thousands of drilled but uncompleted Wells. Sell all the SPR and refill when prices are below $40.