U.S. Energy Department to sell up to 20 million barrels of oil from the Strategic Petroleum Reserve

The U.S. Energy Department announced on Monday that it intends to sell up to 20 million barrels of crude oil from the nation's Strategic Petroleum Reserve. Up to 8 million barrels each will be sold from the Bryan Mound, Big Hill and West Hackberry SPR sites and up to one million barrels from the Bayou Choctaw site, according to the DOE. Bids must be received no later than 10 a.m. Central time on Aug. 31 and contracts will be awarded no later than Sept. 13, with delivery to take place between Oct. 1 and Dec. 15. The announcement of the sale comes as prices for oil rally Monday by more than 5%. On the New York Mercantile Exchange, October West Texas Intermediate oil CLV21, +5.58% traded at $65.54 a barrel, up $3.40, or 5.5%. Prices look to mark their first gain in eight sessions.