- The Biden administration stated yesterday that it will sell an additional 20 MMBbl of crude for the SPR as part of the previous plan announced in the spring to curb rising energy prices
- The initial plan called for a record 1 MMBbl/d to be released from the SPR for six months; the U.S. has already sold 125 MMBbl from the SPR, and another 70 MMBbl has already been sent to buyers
- The DOE will begin taking bids this fall to start the process of buying back 60 MMBbl of crude to restock inventories, and it is expected to soon propose a rule to allow for entering forward contracts to buy the crude in future years at fixed, present rates
- "That sounds technical, but what it means in practice is that producers would have more certainty about future demand for their product and that would encourage investment in production today," an administration official said
- He also added that oil purchases to replenish the SPR will not be competing with demand for oil in the near term as they will likely take place after FY2023
- China’s Covid-19 infections rebounded, with an increase in cases in the south threatening the operations of major companies (BBG)
- An average of 886 cases per day were reported in China in the last week, according to the NY times
- Concerns about disruptions to global supply chains are growing as attention turns to the southern manufacturing hub of Shenzhen, where 19 local cases were detected
- Authorities ordered some of China's largest companies, including iPhone manufacturer Foxconn and oil producer Cnooc Ltd., to restrict operations and operate in a "closed loop" system for seven days