18 that it had finalized a first-of-its kind rulemaking that gives the department the option to pay a fixed price at the time a transaction is executed. The move builds on a May announcement to buy back 60 million barrels of crude for the SPR - or one-third of the massive drawdown - at lower prices in the future. The Biden administration also took steps to ease efforts to refill the emergency oil stockpile, with plans to allow fixed-price forward purchases of crude oil. "We think that's an important signal for producers that the SPR will be part of helping to moderate and stabilize price flows not only when prices are going high but when prices are going low, and using the SPR in that responsible manner," the second official said. 19 "its intent to do the SPR repurchases to add to global crude oil demand at times when WTI crude oil is at or below $67/b-$72/b" in order to protect taxpayer interests and encourage more near-term production, a second senior administration official said. "Tomorrow the president will reiterate that outsized profit margins are inappropriate, especially at a time of war, and will call on companies to pass their savings through to consumers," the official said. "The profits that energy refining companies are now capturing on every gallon of gas is about double what it typically is at this time of year, and reseller margins over the refinery price are more than 40% above typical level," the administration official said, contending that these record profits have kept pump prices higher than they should be as oil prices have come down. 19 to also reiterate his call for the oil industry to do its part to address the pain at the pump exacerbated by the Russia-Ukraine war. "At current prices, the average driver will spend about $60 per month less than they would have if prices had stayed at that peak level," a senior administration official said on a call with reporters Oct. Gasoline prices have fallen about $1.15/gal from their peak in June. At the time, oil was trading at much higher levels, well above $100/b," Craig Erlam, OANDA's senior market analyst said in an Oct. "How effective the SPR release will be may well depend on whether other join as we saw earlier this year. NYMEX crude had settled down $2.64 at $82.82/b prior to the announcement, in part on expectations that an SPR release was in the works. Oil futures climbed following the announcement of the release, with NYMEX front-month crude trading $1.18 higher at $84.00/b late Oct. Some 165 million barrels of crude have already been delivered or committed for delivery under the release to help mitigate global supply disruptions caused by Russia's invasion of Ukraine and help lower energy costs. The sale wraps up President Joe Biden's historic commitment to release 180 million barrels, or roughly 1 million b/d, from the SPR from April through the end of October. 1, the department said in a press release. 25, and contracts will be awarded no later than Nov. The DOE is offering up to 3 million barrels of sour crude and up to 12 million barrels of sweet crude from Big Hill and Bryan Mound in Texas and West Hackberry in Louisiana for delivery in December. Receive daily email alerts, subscriber notes & personalize your experience.
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