The Biden administration released some 180 million barrels of oil from America’s emergency stockpile ahead of the 2022 midterm elections, ostensibly to try to get a grip on the skyrocketing price of gas at the pump, with the reserve subsequently tumbling to its lowest levels since 1983, APA reports citing Sputnik.
Tasked with the purchase of three million barrels of sour crude oil for the Strategic Petroleum Reserve in February, the US Department of Energy has reportedly rejected multiple offers from producers, hoping to get a better deal.
Informed sources told US business media that the offers the DoE has received so far have been turned down due to prices being deemed too high, and for failing to meet other requirements, which were not outlined in any detail.
The failure to get a deal means the purchase will be put off until an unspecified later date, the Energy Department has confirmed in a statement.
“DoE only select bids that meet the required crude specifications and that are at a price that is a good deal for taxpayers. Following a review of the initial submission, DoE will not be making any award selections for the February delivery window,” the department said Friday.
Neither the DoE nor the media sources offered any information on which producers submitted bids, nor the possible reasons, besides cost, that they were turned down.
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