The US Department of Energy has issued oil purchase bids to refill strategic black gold reserves that President Joe Biden’s administration has used heavily for more than a year with the aim of lowering gasoline prices.
The government called on the companies to sell the oil to the state “at less than $96 a barrel, the average price” at which it bought it, which would be “a good deal for the taxpayer.”
The buy-back process includes, in the first stage, three million barrels of oil, according to a statement by the Ministry of Energy on Friday.
Noting that with the general rise in prices following the Covid pandemic receded and the war broke out in Ukraine, the price of a barrel increased, reaching a maximum of $120. Therefore, the Biden administration decided to resort exceptionally to the country’s strategic reserves in order to put pressure on prices.
