US Seeks to Refill Strategic Oil Reserves Amid Political and Economic Challenges

The U.S. government is pursuing the purchase of up to 3 million barrels of oil for the Strategic Petroleum Reserve (SPR) by mid-2025. Despite recent replenishments, financial constraints could hamper future acquisitions unless Congress approves additional funding. Political dynamics might complicate efforts to cancel mandated future oil sales.

The U.S. government announced plans on Monday to acquire up to 3 million barrels of oil for the Strategic Petroleum Reserve (SPR), targeting delivery by mid-2025. This initiative follows a substantial sale in 2022 involving 180 million barrels to manage gasoline price spikes post-Ukraine invasion.

Despite recent efforts buying back over 55 million barrels at lower prices, the Department of Energy faces potential financial roadblocks without congressional approval for more funds. A DOE spokesperson emphasized the necessity of securing affordable crude with current emergency revenues for taxpayers' benefit.

Political intricacies pose challenges to filling the SPR's purchasing fund, as seen in past mandated sales of over 100 million barrels slotted for 2026 to 2031. Kevin Book, an analyst, warned of possible confrontations on Capitol Hill, potentially affecting the strategic oil inflow needed for national energy security.

(With inputs from agencies.)