The US is offering for sale 11 million barrels of sour crude from its Strategic Petroleum Reserve for delivery by December in order to soften the blow of crude shortages once the 5 November Iran sanctions come into effect. In a statement on Wednesday, BP said it was "pleased that we have been able to secure this significant supply contract". Minimum delivery sizes for pipelines is 100,000 barrels, for vessels is 250,000 barrels, and for barges is 40,000 barrels. The sanctions on Iran are expected to cause a shortage of 1 million bpd of crude.
The US is offering for sale 11 million barrels of sour crude from its Strategic Petroleum Reserve for delivery by December in order to soften the blow of crude shortages once the 5 November Iran sanctions come into effect. The oil will be sold from three caverns: Big Hill and Bryan Mound in Texas, and West Hackberry in Louisiana. Minimum delivery sizes for pipelines is 100,000 barrels, for vessels is 250,000 barrels, and for barges is 40,000 barrels. The sanctions on Iran are expected to cause a shortage of 1 million bpd of crude.