The US Department of Energy said on Friday. The US government has removed a total of about 180 million barrels of oil from its reserves since March to counter the skyrocketing energy prices as a result of Russia’s war of aggression against Ukraine.
The Department of Energy said the bailout program would allow the United States to buy back oil at a price well below the selling price Washington had when it ran out of oil reserves.
In doing so, the ministry also strengthens the country’s energy security. The Department of Energy’s plan envisions purchasing up to three million barrels of oil initially to attract sellers who offer commodities at fixed prices.
Crude oil prices have recently dropped significantly from their highs at the beginning of the year. Also, US gasoline prices have dropped more than $1.80 per gallon from their June 2022 peak and are now at their lowest level since September 2021, according to the Department of Energy.
Since September 2021, the US has diverted a total of more than 212 million barrels (one barrel is 159 litres) from strategic oil reserves. Reserves are currently at their lowest level since 1984. The US government announced in October that it would replenish reserves as soon as prices fell between $67 and $72 per barrel.
(SDA)