The Biden administration plans to acquire an additional 3 million barrels of sour crude oil for the Strategic Petroleum Reserve (SPR), as announced by the Department of Energy (DOE). Bids for the oil, which is to be delivered to Texas’s Bryan Mound site between April and May, are due by November 6, with a price cap set at $79.99 per barrel. This purchase is part of an ongoing effort to replenish the SPR, which has been reduced significantly since President Biden took office, following a series of releases aimed at stabilizing energy prices and addressing supply disruptions. Recently, the DOE awarded contracts for the purchase of 6 million barrels of oil, taking advantage of lower prices as U.S. benchmark crude fell to its lowest level in over a month.

Libyan oil exports are expected to increase from October levels, with the country being scheduled to ship approximately 31.45 mbbls of crude in November (1.05 mbbls/d). Libyan oil exports had previously recovered to 1.3 mbbls/d following the easing of the crisis between the east and western sides of the country. October exports are projected at 26.52 mbbls or 855k bbls/d according to the current loading plan.

OPEC+ is considering delaying a planned oil production increase of 180,000 barrels per day, originally set for December, due to concerns over weak demand and rising supply. This increase was previously postponed from October in response to falling prices. Sources indicate that the delay could extend for at least a month, with a decision potentially being made as early as next week. OPEC+ is scheduled to meet on December 1 to discuss its future policies.

This week’s DOE report is below.

Please contact your Energy Account Manager with any needs you have.

Propane

The EIA reported a small draw of 240,000 barrels overall which was under the market expectation of 600,000 barrels. Region specific the Midwest had a build of 170,000 barrels, and the Gulf Coast had a draw of 490,000 barrels. Exports decreased by 18% over last week, while the implied domestic demand was up 20%. Production had a slight increase of 2% over last week’s pace. Total US propane inventories at 101.5 million barrels which is close to last year’s level. Below is this week’s DOE report along with US propane inventory and future weather charts. The market will be looking towards weather and exporting in the following weeks to determine its direction. Please contact your Energy Account Manager with any needs you have.

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