Acquiring petroleum products by purchase.

CFR · 2024-01-01 · US · Title 10

(a) (b) (i) May be either continuously open or fixed for a period of time; and (ii) May provide either for immediate delivery or for delivery at future dates. (2) DOE may alter the acquisition plan to take advantage of differentials in prices for different qualities of petroleum products, based on a consideration of factors, including the availability of storage capacity in the SPR sites, the logistics of changing delivery streams, and the availability of ships, pipelines, and terminals to move and receive the petroleum products. (3) Based on the market analysis described in paragraph (d) of this section, DOE may refuse offers or suspend the acquisition process on the basis of Government estimates projecting substantially lower petroleum product prices in the future than those contained in offers. If DOE determines there is a high probability that the cost to the Government can be reduced without significantly affecting national energy security goals, DOE may either contract for delivery at a future date or delay purchases to take advantage of the projected lower future prices. Conversely, DOE may increase the rate of purchases if prices fall below recent price trends or futures markets present a significant contango and prices offer the opportunity to reduce the average cost of petroleum product acquisitions in anticipation of higher future prices. (4) Based on the market analysis described in paragraph (d) of this section, DOE may refuse offers, decrease the rate of purchas

official document · source cfr-2024 · id 10:§ 626.6