US sells 11 million barrels of oil from reserve

[Joanna + 68]

Six companies, including ExxonMobil Corp, bought a total of 11 million barrels of oil from the U.S. Strategic Petroleum Reserve, in a sale timed to take place ahead of U.S. sanctions on Iran that are expected to remove oil from the global market. The oil sold in a range of $67.66-$69.05/bbl, according to the Department of Energy.

Exxon Mobil (NYSE:XOM) bought ~3.3M barrels from the reserve, Marathon Petroleum (NYSE:MPC) purchased nearly 1.4M barrels, Saudi Arabia's Motiva Enterprises acquired 2.4M barrels, Phillips 66 (NYSE:PSX) added more than 2M barrels, Royal Dutch Shell (RDS.A, RDS.B) picked up nearly 1.6M barrels, and Valero Energy (NYSE:VLO) bought 330K barrels.

 

[Stephen + 67]

This is not an emergency and the reserve should stay in reserve. My guess is that Trump wants gas prices low for the midterm elections. 

[Joanna + 68]

Just now, Stephen said:

This is not an emergency and the reserve should stay in reserve. My guess is that Trump wants gas prices low for the midterm elections. 

Can't wait to be over 

[JohnAtronis + 78]

Or maybe this administration is trying to actually help people by avoiding a spike in prices caused by needed sanctions against Iran

[Sefko Trafikant + 35]

1 minute ago, JohnAtronis said:

Or maybe this administration is trying to actually help people by avoiding a spike in prices caused by needed sanctions against Iran

looking at the POTUS's Twitter activity, I doubt that he is there to help

[Sefko Trafikant + 35]

8 minutes ago, Joanna said:

Six companies, including ExxonMobil Corp, bought a total of 11 million barrels of oil from the U.S. Strategic Petroleum Reserve, in a sale timed to take place ahead of U.S. sanctions on Iran that are expected to remove oil from the global market. The oil sold in a range of $67.66-$69.05/bbl, according to the Department of Energy.

Exxon Mobil (NYSE:XOM) bought ~3.3M barrels from the reserve, Marathon Petroleum (NYSE:MPC) purchased nearly 1.4M barrels, Saudi Arabia's Motiva Enterprises acquired 2.4M barrels, Phillips 66 (NYSE:PSX) added more than 2M barrels, Royal Dutch Shell (RDS.A, RDS.B) picked up nearly 1.6M barrels, and Valero Energy (NYSE:VLO) bought 330K barrels.

 

The selling of oil from the SPR was wrote into law by Congress. The president has some leeway on the time frame. But it's been happening  for almost two years.

[Nigerian Price + 22]

7 minutes ago, Stephen said:

This is not an emergency and the reserve should stay in reserve. My guess is that Trump wants gas prices low for the midterm elections. 

I think it is important to look at all the debt in the Fracking industry before selling off all of the Strategic Reserves. 

[Nigerian Price + 22]

11 minutes ago, Joanna said:

Six companies, including ExxonMobil Corp, bought a total of 11 million barrels of oil from the U.S. Strategic Petroleum Reserve, in a sale timed to take place ahead of U.S. sanctions on Iran that are expected to remove oil from the global market. The oil sold in a range of $67.66-$69.05/bbl, according to the Department of Energy.

Exxon Mobil (NYSE:XOM) bought ~3.3M barrels from the reserve, Marathon Petroleum (NYSE:MPC) purchased nearly 1.4M barrels, Saudi Arabia's Motiva Enterprises acquired 2.4M barrels, Phillips 66 (NYSE:PSX) added more than 2M barrels, Royal Dutch Shell (RDS.A, RDS.B) picked up nearly 1.6M barrels, and Valero Energy (NYSE:VLO) bought 330K barrels.

 

buy low sell high. Wharton Economics 101, but also at the elementary school system

[Meanwhile + 49]

Frankly if oil prices rise, it will spur the transition to EV cars and more conservation approaches. That's a good thing. 

[Hajga Loma DK + 47]

Just now, Meanwhile said:

Frankly if oil prices rise, it will spur the transition to EV cars and more conservation approaches. That's a good thing. 

unfortunately, most emerging markets cannot afford EV and their infrastructures cannot support them.

[Joanna + 68]

In 2017, the United States imported approximately 10.1 million barrels per day (MMb/d) of petroleum from about 84 countries. Petroleum includes crude oil, natural gas plant liquids, liquefied refinery gases, refined petroleum products such as gasoline and diesel fuel, and biofuels including ethanol and biodiesel. About 79% of gross petroleum imports were crude oil.In 2017, the United States exported about 6.3 MMb/d of petroleum to 180 countries. About 82% of total petroleum exports were petroleum products. The resulting net imports (imports minus exports) of petroleum were about 3.7 MMb/d.

[Stephen + 67]

17 minutes ago, Joanna said:

Six companies, including ExxonMobil Corp, bought a total of 11 million barrels of oil from the U.S. Strategic Petroleum Reserve, in a sale timed to take place ahead of U.S. sanctions on Iran that are expected to remove oil from the global market. The oil sold in a range of $67.66-$69.05/bbl, according to the Department of Energy.

Exxon Mobil (NYSE:XOM) bought ~3.3M barrels from the reserve, Marathon Petroleum (NYSE:MPC) purchased nearly 1.4M barrels, Saudi Arabia's Motiva Enterprises acquired 2.4M barrels, Phillips 66 (NYSE:PSX) added more than 2M barrels, Royal Dutch Shell (RDS.A, RDS.B) picked up nearly 1.6M barrels, and Valero Energy (NYSE:VLO) bought 330K barrels.

 

11 mil bbls (1.75%) is nothing. But someone is going to make some money on it

[Bill Simpson + 7]

Obviously trying to drive the price of gasoline in the United States down before the November 6 midterm Congressional elections. But the gasoline price won't keep the House from being controlled by the Democrats next year. That will change less than 1% of the vote. 

[ceo_energemsier + 1,818]

I see posts that state it is to drive down prices of gasoline. More than likely it will have very little effect on the actual price of petro products @ the wholesale or retail levels. US refiners are (and have been running) refineries at just about max run rates. It may actually help , stem (some, small amount)  pf the  flow of US$ to OPEC producers in the short term for those barrels that dont get imported.

It may help other countries that maybe impacted with the Iran oil sanctions to be able to replace those sanctioned Iranian barrels with 11mmbbls of other OPEC crude if those 11mmbbls are not "imported" into the US for that time period

[PaulG + 21]

1 hour ago, ceo_energemsier said:

I see posts that state it is to drive down prices of gasoline. More than likely it will have very little effect on the actual price of petro products @ the wholesale or retail levels. US refiners are (and have been running) refineries at just about max run rates. It may actually help , stem (some, small amount)  pf the  flow of US$ to OPEC producers in the short term for those barrels that dont get imported.

It may help other countries that maybe impacted with the Iran oil sanctions to be able to replace those sanctioned Iranian barrels with 11mmbbls of other OPEC crude if those 11mmbbls are not "imported" into the US for that time period

Most of those 11 mmbbls that are imported, don't come from OPEC

[ceo_energemsier + 1,818]

12 minutes ago, PaulG said:

Most of those 11 mmbbls that are imported, don't come from OPEC

Oh.. Where do we import 11mmbls of crude if OPEC is not a major supplier to the US (barring the shale boom putting a dent into OPEC's exports to the US)

[Tom Kirkman + 8,860]

9 hours ago, Sefko Trafikant said:

The selling of oil from the SPR was wrote into law by Congress. The president has some leeway on the time frame. But it's been happening  for almost two years.

^  this.

[Rodent + 1,424]

11 hours ago, Sefko Trafikant said:

The selling of oil from the SPR was wrote into law by Congress. The president has some leeway on the time frame. But it's been happening  for almost two years.

I feel like this point keeps being made and people keep purposely and rather conveniently, forgetting it.

[ceo_energemsier + 1,818]

4 hours ago, Tom Kirkman said:

^  this.

This has happened several times in the last decade+

It is happening now to ease the supply pressure on world crude markets supply and demand in the even the Iran sanctions do kick in and Iranian oil is taken off the market.

I think this is a test run to see how things work out for future planned sales to ease supply pressure and prices from sky rocketing

[Roger + 2]

This is roughly 2 days of net imports!

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[Billyjack + 58]

Considering that few of the salt dome storage reservoirs were pressure tested and a lot of the "crude oil" injected was tank bottoms, I hope they don't pull it too hard and find out it's not there.