The U.S. replenishes its Strategic Petroleum Reserve on dips, but is wary of stimulating oil prices ahead of the election

(1) The U.S. Department of Energy said in a statement on Tuesday that it is seeking to buy up to 3 long.3 million barrels of oil to replenish the Strategic Petroleum Reserve (SPR). (2) After selling a record number of strategic petroleum reserves in 2022, the decline in oil prices fall brought the United States back to the market to replenish strategic reserves. (3) Longest months ago, the Department of Energy canceled plans to buy about 3 million barrels of oil to fill the strategic reserve as oil prices pumped beyond the government’s target of $79 a barrel to buy back U.S. crude. (4) The Energy Department said on Tuesday it was seeking to deliver longing 3.3 million barrels of oil in October, though it could cancel purchases if oil prices pumped again. The Department of Energy has also slightly raised the price level of oil intended to buy back. (5) The Department of Energy also said on Tuesday that it would buy back oil at a maximum price of $79.99 per barrel, nearly $1 higher than its previous target. (6) However, the number of buybacks may be limited as the government is concerned about any measures to stimulate oil prices before the November 5 election. (7) ClearView Energy said in a client note that “while the Department of Energy appears to be returning to the market in response to the recent weakness in oil prices, we believe the White House’s sensitivity to retail oil prices has not diminished”