The Biden Administration will purchase 60 million barrels of crude in Q3 in an effort to replace volumes in the US strategic petroleum for the first time in nearly 20 years, CNN reports, after authorising a record release over six months.
Citing an unnamed Energy Department official, CNN said what is referred to as a “long-term buyback plan” for oil would be announced later on Thursday.
Delivery of those first 60 million barrels, according to CNN, would be paid for with revenue received from sales of emergency oil, while the time frame is not specific beyond “future years”.
Oil jumped to $111.5 per barrel for Brent–the highest price since late March–and over $108 for WTI on news of the buyback plan, along with results of an OPEC+ meeting earlier today in which the cartel refrained from increasing output quotes beyond 423,000 bpd for June. - CNBC