WASHINGTON — The Biden administration stated Friday it is purchasing 3 million barrels of oil to start to renew U.S. tactical reserves that authorities drainedpipes earlier this year in a quote to stop fuel costs from increasing inthemiddleof production cuts by OPEC and a restriction on Russian oil imports.
President Joe Biden withdrew 180 million barrels from the Strategic Petroleum Reserve beginning in March, taking the stockpile to its leastexpensive level giventhat the 1980s. The purchase, to start in January, will start to renew the reserve and is mostlikely to be followed by extra purchases, authorities stated.
The Energy Department called the purchase “a great offer for American taxpayers” because the cost will be lower than the $96 per barrel average the U.S. oil was offered for. The replenishment likewise will reinforce U.S. energy security, the department stated in a st