US plans to buy 1.2 mln barrels of oil for strategic reserve

Oil barrels

The US Energy Department plans to purchase 1.2 million barrels of oil to help replenish the country's strategic petroleum reserve (SPR) at an average price of $77.57 a barrel from two companies after receiving 18 offers. 

"US President Joe Biden and the Energy Department remain committed to refilling the SPR at fair prices, safeguarding this critical energy security asset while getting a good deal for American taxpayers," a department spokesperson told Reuters.

Last year, the US government released a record 180 million barrels from the reserve to help stabilize the oil markets and combat rising prices following Russia's invasion of Ukraine. 

The department said that emergency sales of oil last year averaged $95 per barrel.