The US Department of Energy (DOE) has issued a Notice of Sale for 15 mbl from the Strategic Petroleum Reserve (SPR) to be delivered in December 2022, with the objective to stabilise fuel prices. In addition, the authorities intends to repurchase crude oil for the SPR when prices are at or below about US$67-72/bbl. As part of its commitment to ensure replenishment of the SPR, the DOE is finalising a rule that will allow it to enter fixed price contracts through a competitive bid process for product delivered at a future date. The US SPR remains the largest strategic reserve in the world with about 400 mbl remaining. The country could authorise significant additional sales in coming months if conditions require.
Earlier in October 2022, the OPEC+ has agreed to reduce oil production by 2 mb/d in November 2022 from the August 2022 required production level, corresponding to a 4.5% cut in the organisation's total supply, with the aim to support oil prices that have sagged because of recession fears. Accordingly, both Saudi Arabia and Russia should produce 10.5 mb/d in November 2022; the production of the OPEC 10 group members should reach 25.4 mb/d, that of non-OPEC producers 16.4 mb/d, leading to the production of the OPEC+ to an average of 41.9 mb/d. In 2021, the United States was the world’s largest oil producer with an output of 15.5 mb/d.
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