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Us oil consumption1/29/2024 SPR remains the largest strategic reserve in the world with about 400 million barrels remaining, which is greater than the amount of any SPR release in U.S. The sale, which completes the 180 million barrels the President authorized in the spring, will add about 500K barrels per day of supply onto the market in December, providing continued supply certainty and some price relief. To help stabilize markets and shore up supply in the face of these challenges, DOE will sell 15 million barrels from the SPR for delivery in December, issuing the Notice of Sale for these barrels in the morning. Global crude oil supply flows remain a challenge, due in large part to the ongoing instability caused by Russia’s actions in Ukraine. gas prices have declined by more than a dollar per gallon from their peak earlier this year. Treasury Department economists estimate that these releases, along with coordinated releases from international partners, have reduced gas prices by as much as about $0.40 per gallon, compared to what they otherwise would have been. In March, following Putin’s further invasion of Ukraine, the President authorized the largest-ever release from the SPR and secured historic coordination with allies and partners to release crude oil from their reserves as well. Keeping prices high even as input costs fall is unacceptable, and the President will call on companies to pass their savings through to consumers – now.Ĭontinuing to Use the SPR to Advance U.S. These outsized industry profit margins – adding more than $0.60 to the average price of a gallon of gas – have kept pump prices higher than they should be. The profit that energy refining companies are now capturing on every gallon of gasoline is about double what it typically is at this time of year, and the retailer margin over the refinery price is more than 40 percent above the typical level. Third, the President is calling on companies to pass through lower energy costs to consumers right away. energy security and bring down energy prices that have been driven up by Putin’s war in Ukraine. That will encourage firms to invest in production right now, helping to improve U.S. This repurchase approach will protect taxpayers and help create certainty around future demand for crude oil. As part of its commitment to ensure replenishment of the SPR, the DOE is finalizing a rule that will allow it to enter fixed price contracts through a competitive bid process for product delivered at a future date. Second, the President is announcing that the Administration intends to repurchase crude oil for the SPR when prices are at or below about $67-$72 per barrel, adding to global demand when prices are around that range. The President is also calling on DOE to be ready to move forward with additional significant SPR sales this winter if needed due to Russian or other actions disrupting global markets. This sale will complete the historic, 180-million-barrel drawdown the President announced in the spring, which has helped to stabilize crude oil markets and reduce prices at the pump. President Biden is directing his Administration to take additional action to strengthen energy security, address the supply crunch, and lower costs.įirst, the Department of Energy (DOE) is issuing a Notice of Sale tomorrow morning for 15 million barrels from the Strategic Petroleum Reserve (SPR) to be delivered in December. According to an industry analyst, the most common price across the country today is $3.39. In fact, gas prices have fallen 15 out of the last 18 weeks. Gas prices fell at the fastest rate in over a decade this summer, with average prices down by about $1.15 per gallon since their peak in June – and just about 30 cents above levels on February 24, when the war in Ukraine began. President Biden is committed to doing everything in his power to respond to Putin’s Price Hike at the pump, and he is delivering. Get Involved Show submenu for “Get Involved””.The White House Show submenu for “The White House””.Office of the United States Trade Representative.Office of Science and Technology Policy.Executive Offices Show submenu for “Executive Offices””.Administration Show submenu for “Administration””.
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