The U.S. Department of Energy has purchased 2.475 MMbbl of sour crude for its Bryan Mound SPR site in Texas for the first time since it began refilling national reserves after a massive emergency sale to offset oil price rallies after Russia’s invasion of Ukraine in 2022.
Macquarie Commodities will supply the entire volume which was priced at $180.3 million. That would work out to $72.85/bbl. The tender had sought 6 MMbbl. The Bryan Mound complex has been undergoing significant construction as part of an upgrading and modernization program to ensure its longevity. It will get over 800 Mbbl monthly during the 1Q 2025. This solicitation attracted 15 offers.
Since it began restocking the national reserves, the agency has directly purchased over 47 MMBbl of oil at an average price of $76.89/bbl. This is about $18/bbl lower than the $95/bbl average sales price for 2022’s emergency sales.
Still the agency is continuing with its SPR buyback program. It issued a new tender seeking 3.6 MMbbl of sour crude for the same SPR site, again for 1Q 2025 delivery. Bids are due by 11am CT on September 4. Offers are valid until 4pm CT on Sept. 20.
