US resumes oil purchases for stockpile

WASHINGTON: Taking advantage of low oil prices, the US government is resuming purchases of crude oil for its emergency stockpile.

The Energy Department says it is seeking contracts for nearly 20 million barrels of oil to be delivered in the coming months to the government's Strategic Petroleum Reserve on the Louisiana-Texas coast.

That includes replacing 12 million barrels that were sold in 2005 from the reserve to meet demands after hurricane Katrina and more than 5 million barrels released to refiners after hurricanes Gustav and Ike last year.

About 2 million barrels will be bought to make up for oil scheduled to be purchased last year when Congress banned shipments to the reserve because of high prices and tight supplies. The ban expired at the end of the year.