-- The US Department of Energy Thursday issued fourth request for proposals for an emergency exchange of up to 92.5 million barrels of crude oil from the strategic petroleum reserve, as it delivers its pledge to release 172 mmbbls out of the 400-mmbbl coordinated action by the International Energy Agency.
The four RFPs will not only make sure quick release of crude to the market, but also secure a 24% premium in the shape of additional barrels when returned. The first three emergency exchange RFPs delivered about 80 mmbbls of crude oil.
This series of SPR exchange solicitation, executed following supply disruptions brought about by the conflict in the Middle East, was the fastest and the largest in the last 50 years, according to DOE.
The latest crude exchange will tap SPR from Bayou Choctaw, Bryan Mound, Big Hill, and West Hackberry sites.
"Under DOE's exchange authority, participating companies will return the borrowed 92.5 mmbbls of crude with additional premium barrels, ensuring the SPR grows beyond current levels while delivering immediate supply to refiners and global oil markets," the DOE said.
The SPR exchange solicitation is open through May 4, 11:00 a.m. CT.