The US Department of Energy has sold 7 million barrels of sweet, government-owned crude oil to at least five different companies, according to market sources.

The oil, which was sold from three of the Strategic Petroleum Reserve’s four sites along the US Gulf Coast, sold for prices between WTI cash + $1.50-$1.70/b FOB, according to sources.

The crude was sold to Atlantic Trading & Marketing, Phillips 66, Marathon Petroleum, Motiva, and Trafigura, according to sources. Phillips 66 was sold the largest amount of crude, sources said.

The five companies did not immediately respond to requests for comment Tuesday.

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The DOE announced the sale on March 8 and bids were due by March 21.

The agency has estimated that deliveries of the crude will take place in April and May.

A DOE official declined to comment on the sale since results have not been made public. The official said that contracts will be awarded to successful offerors no later than April 6.

The sale offered up to 3 million barrels from the Bryan Mound site in Texas, up to 2.5 million barrels from Big Hill in Texas, and up to 1.5 million barrels from West Hackberry in Louisiana.

The sale is the latest in nearly 30 planned SPR sales mandated by Congress through fiscal 2027 to pay for modernization of the SPR system, government budgets and unrelated legislative efforts.

More than 300 million barrels of government-owned crude is estimated to be sold from the SPR between fiscal 2017 and fiscal 2027.

The SPR, which has a storage capacity of 713.5 million barrels, held 664.2 million barrels as of January 12, including 258 million barrels of sweet crude and 406.2 million barrels of sour crude, according to DOE. –Brian Scheid with Mary Hogan in Houston, brian.scheid@spglobal.com

–Edited by Kevin Saville, newsdesk@spglobal.com

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