The U.S. Department of Energy announced that the government has agreed to sell crude oil from the country’s Strategic Petroleum Reserve to eight companies, including Exxon, Chevron, and Valero, as part of a scheduled auction to raise funds for the United States budget.
The ministry added that the sale was not related to disruptions Energy from Hurricane Ida which engulfed the coast of the United States on the Gulf of Mexico e in Louisiana, but the timing could ease some of that supply pressure.
The contracts, for a total of 20 million barrels, will be delivered by the SPR sites in Texas and Louisiana from October 1 to December 15, the department said in a September 10 statement that appeared on its website web Monday.
Fifteen companies have submitted bids for the auction, which was announced on 23 August.
The sale came as oil prices in the US rose to a one-week high above $ 70.60 a barrel amid supply concerns from Hurricane Ida damage.
About three-quarters of U.S. offshore oil production in the Gulf of Mexico, or about 1.4 million barrels per day, has been closed since the end of August.
The volume of crude oil in the US Strategic Oil Reserve was 621.3 million barrels as of August 27.
Read More About: Business News