NEW YORK —The United States will have reconstituted its reservations strategies of Petroleum by the end of the year, after using them massively to dump crude oil into the market and stop the escalation of black gold prices, Energy Secretary Jennifer Granholm indicated on Monday.
Between September 2021 and July 2023, the United States used 274 million barrels of its strategic reserves (SPR), around 44% of the total.
After this phase, SPR fell to its lowest level in 40 years.
It was an unprecedented volume – in a decision criticized by Republicans – regarding the management of reserves intended in theory to face major shocks in the oil market.
Since June 2023, the US government began buying back oil to replenish its stocks.
In nine months, SPR increased by about 14.7 million barrels, according to figures from the US Energy Information Agency (EIA).
During a speech at the large CERAWeek energy conference in Houston, Texas, Granholm explained that the government has already purchased oil to increase the volume of reserves by 30 million barrels compared to its July 2023 floor.
It also resorted to swap contracts that allow the government to recover oil after lending an equivalent amount to market players.
“Between now and the end of the year we will be where we were if we had not used” the reserves, the official stated.
Source: With information from AFP
