Overview
- The Department of Energy issued a solicitation on Oct. 21 for 1 million barrels tied to spot prices, with bids due Oct. 28 and deliveries slated for December and January to the Bayou Choctaw site in Louisiana.
- The purchase will draw on $171 million from President Trump’s recent tax and spending law, and larger restocking efforts would require new congressional funding that Energy Secretary Chris Wright says could total up to $20 billion over years.
- SPR inventories stand near 409 million barrels against roughly 700 million barrels of capacity after record releases under President Joe Biden, including a 180 million‑barrel sale in 2022.
- Ongoing maintenance at the SPR’s salt‑cavern sites and aging surface equipment is limiting intake capacity, with some previously scheduled deliveries slipping into late 2025.
- WTI settled at $57.82 on Tuesday, down about 30% since January, as record U.S. output and planned OPEC+ supply increases pressure prices that DOE views as favorable for purchases.