Biden's Energy Policy Shift? Analyst 'Trying To Find Wisdom' Behind DOE's Move To Buy 6M Barrels Of Oil
Portfolio Pulse from Shanthi Rexaline
The U.S. Department of Energy’s Office of Petroleum Reserve announced plans to purchase up to 6 million barrels of oil for the Strategic Petroleum Reserve (SPR), with deliveries in December 2023 and January 2024. The purchases will be made when oil prices are below $79 per barrel. The announcement follows the Biden administration's sale of about 180 million barrels of oil from the SPR in 2022. The United States Oil Fund, LP (NYSE:USO), an ETF, rose 2.30% to $81.68 on Thursday.
October 20, 2023 | 6:32 am
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The United States Oil Fund, LP (NYSE:USO), an ETF, rose 2.30% to $81.68 on Thursday following the DOE's announcement to purchase oil for the SPR.
The DOE's announcement to purchase oil for the SPR could potentially increase demand for oil, which could positively impact the price of oil and, consequently, the value of the USO ETF, which tracks the price of oil.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80