US sells final tranche of 2022 SPR release, says cut mogas prices 40 cts/gl

Quantum Commodity Intelligence - Six energy companies have purchased 15 million barrels in the latest crude oil sale from the US Strategic Petroleum Reserve, in what is the final batch of President Biden's sale of 180 million barrels during 2022.

Refiner Valero was by far the largest buyer in the sale of emergency stocks, picking nearly half of the available volume with 7.45 million barrels, followed by Marathon Petroleum, Macquarie and Equinor.

The sale marks the final tranche of the sales auctions for this year, which were announced last March and started in May.

Crude oil deliveries will take place from the West Hackberry, Big Hill and Bryan Mound SPR storage sites from 1-31 December.

The Department of Energy said in a statement: "The drawdowns have been a stabilizing force in the volatile energy market, and a recent analysis from the Department of the Treasury estimates that SPR releases this year, along with coordinated releases from international partners, have reduced gasoline prices by up to about 40 cents per gallon compared to what they would have been absent these drawdowns".

US emergency oil stocks at the end of October stood at around 400 million barrels, the lowest level since 1984, which analysts say limits the potential for further largescale sales next year. 

Awarded SPR contracts for December 2022 loading:

1. Equinor (1.75 million barrels)
2. Macquarie (1.85 million barrels)
3. Marathon (2.95 million barrels)
4. Phillips 66 Company (0.35 million barrels)
5. Shell (0.7 million barrels)
6. Valero (7.45 million barrels)