The US Energy Department said that it is starting to buy oil for the Strategic Petroleum Reserve (SPR) after selling 180 million barrels earlier this year. The purchase will be around 3 million barrels and delivery is likely to take place in February
SPR fell to 380 million barrels, the lowest level since 1984. This raised concerns about the country's energy security.
The White House has previously said that it will buy black gold for the SPR when prices go down to $67-$72 a barrel or lower. At the moment, WTI futures are trading at around $75.
According to the official, the White House will try to be flexible in that regard and look into current fuel prices for possible purchases. He also added that it was very useful to put this notice out and see what the market has to offer in terms of the cost of oil.
The Energy Department said buying oil at current prices provides an opportunity to secure a lucrative deal for US taxpayers. This will be done by buying fuel below the average price of $96 per barrel, as well as by strengthening energy security.