re: US Dept of Energy preparing to start SPR refill purchases

It sells on the global market in order to get the best price. If you limit outside buyers really you would likely only screw yourself (i.e. the taxpayer). The stockholders of the buyers would still profit though.

Even then, you could have someone like P66 or potentially a mid-stream play to blend the crude then sell it on the open market as a refined product.

Honestly, the sale shouldn't be happening and the buying shouldn't be happening right now, but Congress moves slow (by design) and have zero chance of reacting to market changes because of the design.

Oct after continuing to sell off..

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Second, the President is announcing that the Administration intends to repurchase crude oil for the SPR when prices are at or below about $67-$72 per barrel, adding to global demand when prices are around that range.

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They already get it from wells on Fed territory like deepwater offshore as payment in kind for royalties.

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Very few understand at all how any of this stuff works.

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The market has changed drastically since the 1970's Crude oil is not all the same. Transportation to Europe is cheaper than to the East Coast by ship. Barge isn't much closer either. On the Louisiana Light Sweet grade Hawaiian refineries get first shot. They cannot use Alaskan due sulfur content. It's actually cheaper to ship via a supertanker from the Middle East to Hawaii than the Gulf Coast.