Motiva and Valero were the Largest Buyers in Biden Administration’s Emergency Oil Reserves SaleMay 19, 2022
A recent report published in Bloomberg reveals that big oil companies like Valero Energy Corporation a Marathon Petroleum Corporation claimed the first tenders for crude oil sales. The report also explains that these energy corporations were the biggest purchasers of crude oil in addition to securing emergency stocks of gasoline. Bloomberg reporters suggest that the companies made contingent purchases to drive down the inflation of fuel.
In light of the financial documentation of the Energy Department, around six companies purchase roughly 18.1 million barrels worth of sulfur crude during Q1 2022. Meanwhile, the US government has already offered 32 million barrels of oil supplies as a loan to these organizations.
Due to the halting of logistics operations and corporations last year on account of the COVID traveling ban, the prices of the commodity started to drop in the open markets. President Biden suggested that the government was arranging a new installment of crude oil from the Federal Reserves for the benefit of the consumers.
However, Russia’s attack on Ukraine and the shortage of oil created havoc among American consumers. Before the geopolitical situation around the world changed drastically, the biggest buyers of Biden administration crude oil sales were companies like Motiva, Marathon, and Valero. Other noteworthy companies like Phillips, Gunvor Group, and Exxon Mobil also made 3 million barrels purchases.
EU Dependence on Russia for Oil
A recent report on crude oil futures performance by MarketWatch suggests that the stock market trends remained in the green lane throughout the year. Recently, the EU implemented the 5th stage of financial sanctions on Russia. US Treasury Secretary Janet Yellen recently claimed that Europe should find alternatives for its massive oil dependence on Russia.
She also admitted that a sudden revocation of the Russian oil deals could devastate the European economy. Price Futures Group’s senior analyst Phil Flynn also seems to agree with the critical analysis of Janet Yellen. PFG projections suggest that since June, intermediate delivery rose by 60% for crude oil. The latest sales settlement per barrel at New York Mercantile Exchange was recorded at $103 after touching the high of $105 earlier this month.