Biden administration buys final batch of oil to fill strategic reserve

The Biden administration said on Friday it has bought the final batch of oil to fill the strategic reserve after selling a record amount of the reserve in 2022 to cope with rising fuel prices after Russia’s invasion of Ukraine.

The Energy Department said it bought 2.4 million barrels of oil for the reserve for delivery in April-May to the strategic reserve site in Brian Mound, Texas.

It said the purchases depleted the department’s coffers, and the sale of 180 million barrels of crude oil in 2022 generated nearly $17 billion in emergency buyback revenue, but Congress canceled about $2.05 billion to help offset the national deficit.

The Biden administration bought back 59 million barrels after selling in 2022 at an average price below $76 a barrel, well below the $95 a barrel it sold at in 2022, and the Energy Department said that resulted in a profit of about $3.5 billion.