U.S. Strategic Petroleum Reserve Declines to Historic Low
The U.S. Department of Energy announced that the Strategic Petroleum Reserve (SPR) inventory fell to 340.3 million barrels, the lowest level recorded since 1983. This decline follows the United States and Iran reaching an agreement to end hostilities and reopen the Strait of Hormuz.
The emergency oil stockpile was reduced by 8.9 million barrels, representing the third‑largest withdrawal on record. The drawdown is part of a broader U.S. plan to release 172 million barrels from the SPR in order to alleviate fuel prices, which have recently surged to multi‑year highs.
When commercial crude inventories are combined with the SPR holdings, total U.S. crude stocks dropped by 79 million barrels to 77.6 million barrels, marking the lowest combined level since 2023, after the war began in late February.
Storage at Cushing, Oklahoma—the primary hub for U.S. oil and the pricing point for West Texas Intermediate futures—declined to 21.6 million barrels, approaching operational minimums and prompting concerns about supply adequacy.
The current SPR level also falls below the low recorded during the Biden administration, when reserves reached 346.8 million barrels.