The U.S. Department of Energy has suspended its planned sale of crude oil from the agency’s Strategic Petroleum Reserve in Texas and Louisiana, Kallanish Energy reports.
The agency canceled the sale of up to 12 million barrels of crude oil in the wake of recent fluctuations in global oil markets, it said in a Tuesday statement.
The sale had been planned to raise revenue for reserve maintenance and upgrades.
“Given current oil markets, this is not the optimal time for the sale,” said DOE spokeswoman Jess Szymanski.
The agency will provide more information as market conditions change, she added.
DOE had planned to sell up to 6 million barrels from Bryan Mound in Texas, up to 3 million barrels from Big Hill in Texas and up to 3 million barrels from West Hackberry in Louisiana.
The sale had been announced last month.
Bids had been due March 10. Contracts were to be awarded by March 20. Deliveries were to have taken place in April and May.
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