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U.S. awards contracts for 30mln barrels of crude oil sales from strategic reserve

The U.S. Energy Department said on Wednesday it has awarded contracts for 30 million barrels of crude oil put up for sale from the U.S. Strategic Petroleum Reserve after Russia’s invasion of Ukraine.

A total of 13 companies submitted 109 bids for evaluation, and contracts were awarded to seven companies, the department said in a statement.

They included 16.06 million barrels to Marathon Petroleum , 1.27 million barrels to Chevron Corp, 2.55 million barrels to Motiva Enterprises, 4.2 million barrels to Phillips 66, and 4.75 million barrels to Valero Marketing and Supply.

The sale was part of a coordinated action with 30 member countries of the International Energy Agency (IEA) to collectively release an initial 60 million barrels of oil from strategic petroleum reserves, it added.

Earlier this month, the United States and other member states of the IEA agreed to release the 60 million barrels of oil reserves to compensate for supply disruptions following Russia’s invasion of Ukraine.

“This effort reflects a common focus and willingness to address significant market and supply disruptions related to President Vladimir Putin’s war on Ukraine,” the department said on Wednesday.

Last week, President Joe Biden imposed a ban on U.S. imports of Russian oil.

The United States had also announced a release of 50 million barrels from the U.S. Strategic Petroleum Reserve last November, a move it said was made in concert with oil-consuming nations including China, India and Japan to bring down high oil prices.

(Reporting by Kanishka Singh in Bengaluru; Editing by Richard Pullin, Bernard Orr)

 

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2022-03-16 22:53:17

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