U.S. begins buying back oil for strategic petroleum reserve

The US will begin repurchasing crude oil for its Strategic Petroleum Reserve (SPR) in February, the Energy Department announced.

"This repurchase is an opportunity to secure a good deal for American taxpayers by repurchasing oil at a lower price than the $96 per barrel average price it was sold for, as well as to strengthen energy security," it said in a statement.

The decision will provide American crude oil producers the assurance to make immediate investments, as the oil price they receive when they sell to the SPR will be locked in place, it added.

This represents a shift from President Joe Biden's move in March to release a total of 180 million barrels from the SPR to support the global oil market that faced serious oil supply disruptions due to Russia's war on Ukraine.

"This initial step to fulfilling the President's replenishment strategy follows his historic release from the SPR to address the significant global supply disruption caused by (Russian President) Putin's war on Ukraine and provide a wartime bridge for domestic production to increase. The releases have helped lower (gasoline) prices for American families," the statement said.