US to purchase 77m crude oil barrels to support producers amid pandemic

It has initially bought 30 million crude oil barrels to place in its Strategic Petroleum Reserve

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Oil and gas business

In a bid to provide relief to US oil producers, the Department of Energy (DoE) has announced it will purchase 77 million barrels of crude oil to place in its Strategic Petroleum Reserve (SPR).

It has initially bought 30 million crude oil barrels and will additionally purchase 47 million barrels to fill up the SPR once funding has been finalised.

The announcement follows the president’s directive to support midsize producers affected by the Covid-19 outbreak.

US Energy Secretary Dan Brouillette, said: “The DoE is moving quickly to support US oil producers facing potentially catastrophic losses from the impacts of Covid-19 and the intentional disruption to world oil markets by foreign actors.”

Assistant Secretary for Fossil Energy, Steven Winberg explained: “The SPR is mission-ready to receive up to 685,000 barrels per day. With its extensive storage, pipeline, and marine infrastructure along the Gulf Coast, the SPR will help relieve oil-related disruptions to our economy.”

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