The Trump administration is moving to refill the nation’s depleted Strategic Petroleum Reserve, taking advantage of low oil prices by purchasing 1 million barrels of crude for delivery in December and January, Bloomberg writes.
The Energy Department says it will use part of the $171 million authorized in the president’s tax and spending law for the buy. Energy Secretary Chris Wright called the move an important step toward restoring U.S. energy security and reversing policies from the previous administration.
West Texas Intermediate crude is trading near $58 a barrel—about 30% below its January peak—making it an attractive time to rebuild reserves, which currently stand at 408 million barrels, or roughly 60% capacity.
Analysts note the limited budget will restrict how much oil can be bought. The reserve was heavily drawn down under President Biden, who released 180 million barrels in 2022 to combat high gas prices.
Bids for the new purchase are due Oct. 28.
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