Move keeps more oil on the market through winter heating season.
WASHINGTON (Reuters) -- The Energy Department said Monday it will hold off buying replacement oil for the nation's emergency petroleum stockpile through the winter heating season in order to keep more supplies on the market.
To help make more oil available for producing gasoline over the summer and help lower then-soaring pump prices, President Bush in April ordered the Energy Department to delay deliveries and purchases of oil for the Strategic Petroleum Reserve until this autumn, which began Sept. 22.
The department needs to replace some 11 million barrels of crude oil that it sold last year from the stockpile for $600 million to oil companies that needed help after Hurricane Katrina disrupted petroleum supplies.
However, the department expects to delay buying that replacement oil during the winter, when demand for heating oil is strong, according to department spokesman Craig Stevens.
Reuters