Overview
- The Energy Department issued a solicitation to buy 1 million barrels for December–January delivery to the SPR’s Bayou Choctaw site, with bids due October 28 and contracts linked to spot prices.
- The reserve holds about 409 million barrels against roughly 700 million barrels of capacity after a 180 million-barrel sale during the Biden administration.
- Energy Secretary Chris Wright has said rebuilding the SPR could take years and cost as much as $20 billion.
- The new law provides about $171 million for purchases and maintenance, well below earlier proposals, and further buying will likely require additional congressional action.
- WTI settled at $57.82 a barrel on Tuesday as high U.S. output and planned OPEC+ supply increases weigh on prices, while ongoing maintenance at SPR sites constrains operations.