On May 10, the Biden administration plans to start buying oil to replenish the Strategic Petroleum Reserve (SPR) after repairs are completed later this year.
The Biden administration has previously said it planned to replenish inventories when oil prices hit around $70 a barrel, but did not specify when.
“The U.S. SPR remains the largest in the world, and the Department of Energy remains committed to supplementing the SPR in a manner that delivers the greatest value to U.S. taxpayers and protects U.S. national security interests,” the U.S. Department of Energy said in a statement Tuesday. At the same time complying with the requirements of Congress and performing necessary maintenance is also part of good management.”
Oil prices traded higher after the announcement, erasing a 1% loss on the day.