US Presidential Energy Security Coordinator Amos Hochstein said sales of 30 million barrels of strategic reserves next September are currently under review.
In 2023, the US government planned to continue withdrawing about 30 million barrels from strategic oil reserves next September, after withdrawing 180 million barrels last year, in order to put pressure on prices.
The Biden administration wants to start buying oil to rebuild strategic stockpiles starting next month at about 3 million barrels.
Hochstein added: “The President of the United States has ordered the withdrawal of 180 million barrels from strategic oil reserves, in addition to approximately 60 million barrels withdrawn by other countries in light of our response to the emergency arising from the war in Ukraine and the decrease in the supply of petroleum products in the markets. And then what we have said and what the president has clearly said is that we do not see a sharp drop in oil prices and if prices fall to close to seventy dollars we will go to the market to buy back some of this oil to support our strategic reserves.
“We are still planning to do it. And, as you said, Congress has permission to sell strategic oil reserves for the period 2023 to 2027. These sales are currently being reviewed,” Hochstein said.
Hochstein pointed out that a few weeks ago, Congress canceled sales from 2024 to 2027, indicating that those barrels would have been sold, but that won’t happen now. He said: “During the current 2023, Congress still allows us to sell a certain amount. But I think that this issue is also being considered now. We will see what happens to these barrels over time. a long-term policy issue that needs to be reviewed and revisited.”
