DOE Seeking 6 Million Bbl of Sour Crude for Strategic Petroleum Reserve -- OPIS

The Department of Energy Friday issued a solicitation for a total of 6 million barrels of sour crude oil for the Strategic Petroleum Reserve.

Delivery of the sour barrels is slated for September through December to the Bayou Choctaw storage site, DOE said in a news release. There is a relatively quick timeline, as bids for 1.5 million bbl for September delivery are due 11 a.m. CT June 12, while bids for the remaining 4.5 million bbl for October, November and December are due June 17, also at 11 a.m. CT.

According to DOE, this solicitation is in addition to 9 million bbl already secured for delivery into the Big Hill storage site in Texas for September, October and November.

DOE is aiming for a price of $79/bbl or less. So far, DOE has purchased a total of 38.6 million bbl for the Big Hill site at an average price of $77/bbl.

On Monday, DOE announced 3 million bbl of crude oil for November being delivered to the Big Hill site at an average price of $77.69/bbl.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Denton Cinquegrana, [e-mail]; Editing by Michael Kelly, [e-mail]

(END) Dow Jones Newswires

06-07-24 1425ET