Energy Department plans purchase of up to 1 million barrels of crude oil for the SPR
The U.S. Energy Department said Wednesday that it has released a “Request for Proposals” to buy up to one million barrels of sweet crude oil to test the conditions of physical oil available to the Strategic Petroleum Reserve. The department plans to buy oil sourced from small to midsize U.S. oil producers and delivery will be made to one or more of the three SPR storage sites during July, with early deliveries accepted in June. The purchase would complement deliveries of crude that are currently scheduled for June or July under the Energy Department’s oil storage initiative that was launched in April. For the week ended May 8, 1.9 million barrels of crude oil was added to the SPR to total 639.8 million barrels. The reserve’s current storage capacity is 713.5 million barrels. June West Texas Intermediate crude
traded at $25.61 a barrel in electronic trading, up from the $25.29 Nymex settlement.