The U.S. government has agreed to sell crude oil from the nation's emergency reserve to eight companies including Exxon, Chevron and Valero, under an auction to raise money for the U.S. budget, the Department of Energy said.
The sales were not related to energy disruptions caused by Hurricane Ida that swept the U.S. Gulf of Mexico and Louisiana, but the timing could still ease some of those supply strains.
The contracts total 20 million barrels of oil to be delivered from Strategic Petroleum Reserve sites in Texas and Louisiana between Oct. 1 and Dec. 15, the department said in a statement dated Sept. 10 that appeared online on Sept. 13
Contracts went to Atlantic Trading & Marketing Inc., Chevron USA, ExxonMobil Oil Corp., Marathon Petroleum Supply and Trading, Motiva Enterprises, Phillips 66 Co, Unipec America Inc. and Valero Marketing and Supply Co, the department said.
Fifteen companies made bids for the oil.
The department called for bids on Aug. 23 to comply with legislation mandating the sale from the emergency oil reserve.
The sale comes as oil prices are at a one-week high amid U.S. supply concerns over storm damage from Hurricane Ida and the ongoing impact from COVID-19.
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The ministry's announcement follows Norway's parliamentary elections this week where climate change and the future of the country's oil industry were major topics of debate.
About 720,000 bbl/d of crude oil production and 1.075 Bcf/d of gas were offline, while 39 production platforms continued to be evacuated after Tropical Storm Nicholas passed through.