The United States will begin buying oil to replenish the strategic reserve
The US Department of Energy will begin buying oil for the strategic reserve, the first such purchase since the release of a record 180 million barrels from stocks this year, reports Reuters.
The department will buy up to 3 million barrels of oil for delivery in February, a senior official told reporters.
President Joe Biden announced the sale of 180 million barrels of oil in late March to combat rising gasoline prices that fueled inflation after Russia's February invasion of Ukraine, the world's biggest exporter of fossil fuels.
Sales of oil from the strategic reserve reduced inventories to about 380 million barrels, the lowest level since 1984, raising concerns about energy security.
"We will issue a request to purchase 3 million barrels of oil for delivery in February 2023," the official said.
The contracts will be awarded to energy companies by January 13.
"This approach will lock in a price in advance when companies submit their bids," the official added.
