The Biden administration said it was replenishing 180 million barrels of oil it had drawn from the Strategic National Petroleum Reserve in response to soaring prices after Russia’s invasion of Ukraine.
The Energy Department announced purchases of 4.65 million barrels on Friday, bringing total purchases since the 2022 cuts to more than 40 million barrels.
Additionally, the Administration, working with Congress, canceled plans to sell 140 million barrels, of the remaining 180 million barrels.
“This milestone is proof that when the Biden-Harris Administration puts a plan in place and executes, it can get results for the American people,” Energy Secretary Jennifer Granholm said in a written statement.
“As promised, we secured 180 million barrels in the Strategic Petroleum Reserve that was released in response to President Putin’s war in Ukraine. We accomplished this while providing favorable terms to taxpayers and preserving the readiness of the Strategic Petroleum Reserve, the largest in the world,” she added.
The ministry said the 43.25 million barrels it purchased were procured at an average price of $77 per barrel, while crude oil it sold in 2022 averaged $95 per barrel.
A senior Energy Department official said the remaining 140 million barrels were effectively purchased at $74 a barrel.
In 2022, Russia’s invasion of Ukraine caused oil prices to soar, which in turn caused gasoline prices to rise in the U.S. and around the world.
In response, the Biden administration announced it would release 180 million barrels from the nation’s emergency stockpile.
