U.S. Strategic Oil Reserves Shrink as Shale Offers Supply Buffer

7 Jul 2017   USA

Drawdowns continues as White House pledges to sell more Rising domestic output to offset need for a flush SPR U.S. strategic crude stockpiles have dropped to the lowest level in more than 12 years as the shale boom reduces the nation’s need for an emergency buffer against shortages. Inventories declined by about 13 million barrels over 17 consecutive weeks as the Energy Department delivered supplies it sold in recent months. That brought stocks down to 682 million as of June 30. In two sales held in January and February , the agency sold almost 17 million barrels of crude from its salt caverns in Texas and Louisiana to companies including Chinese state-owned PetroChina Co. Ltd. The SPR sales have less impact than in the past because the U.S. doesn’t need that much in storage, said Vikas Dwivedi, senior analyst at Macquarie Capital (USA) Inc. “You only need 60 days […]

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