SPR TEST SALE PROCEEDING

Nov. 19, 1990

A test sale of almost 4 million bbl of oil from the U.S. Strategic Petroleum Reserve is going smoothly, the Department of Energy reports. A little more than half of the oil-2,042,700 bbl of the planned 3,925,000 bbl sale-had been delivered or was scheduled to be taken by Nov 20. The balance is due to be taken by Dec. 1. Final sales prices ranged from $27.07 to $32.25/bbl for sour crude and $34.34 to $34.72/bbl for sweet. Prices are adjusted to reflect changes in market prices at the time of

A test sale of almost 4 million bbl of oil from the U.S. Strategic Petroleum Reserve is going smoothly, the Department of Energy reports.

A little more than half of the oil-2,042,700 bbl of the planned 3,925,000 bbl sale-had been delivered or was scheduled to be taken by Nov 20. The balance is due to be taken by Dec. 1.

Final sales prices ranged from $27.07 to $32.25/bbl for sour crude and $34.34 to $34.72/bbl for sweet. Prices are adjusted to reflect changes in market prices at the time of delivery.

Eleven companies were high bidders in the test sale, offering an average of $34.14/bbl for sour and $38-68/bbl for sweet (OGJ, Oct. 15, p. 30).

President Bush had ordered the test sale to show that the SPR is ready for use in the event of an oil supply disruption.

DOE officials said the drawdown has encountered only one problem, and that was outside the SPR system: One crude delivery was delayed a day due to a brief shutdown of the Capline pipeline system.