WASHINGTON, D.C. — The U.S. Strategic Petroleum Reserve has fallen to its lowest level since 1983 as the Trump administration continues to release emergency crude to offset supply disruptions caused by the war with Iran.
According to federal data, the reserve is now at about 304.8 million barrels, which is a drop of over 108 million barrels since the drawdown started. The administration said it would release 172 million barrels over 120 days after commercial traffic through the Strait of Hormuz was mostly shut down. For context, about one-fifth of the world’s oil and liquefied natural gas usually passes through that strait.
The reserve is supposed to be used for serious supply emergencies, and the administration has used it to try to keep gasoline and crude prices from spiking. Still, President Trump has said that these releases cannot make up for wartime disruptions forever.
Overall, the oil market is still tight. Saudi Aramco estimates that the conflict with Iran has removed more than 2.6 billion barrels from global supply. U.S. refiners are trying to bring in more oil from the Middle East when they can.
It is important to be clear here: commercial U.S. crude inventories are not at a 45-year low. EIA data shows that commercial stocks have actually gone up recently, to about 407 million barrels. The record low only applies to the Strategic Petroleum Reserve, not to all domestic crude supplies.
Sources:
- The Hill – MBFC Rating
- Reuters – MBFC Rating
- Reuters – MBFC Rating
- U.S. Energy Information Administration – Unrated
