US Strategic Petroleum Reserve Drawdown
The U.S. Department of Energy reported that the Strategic Petroleum Reserve (SPR) fell to 340.3 million barrels, the lowest inventory level since 1983. The decline represents a draw of 8.9 million barrels, the third‑steepest reduction on record, and is part of a planned release of 172 million barrels announced by the Trump administration in March.
The release was coordinated with other nations less than two weeks after the United States and Israel launched attacks on Iran, with the stated aim of mitigating rising fuel prices caused by the conflict. If the entire 172‑million‑barrel program is completed, the SPR will contain roughly 243 million barrels, about one‑third of its authorized capacity, marking the second‑largest release in the reserve’s history.
The SPR, created in response to the Arab oil embargo of the early 1970s, is being used by the administration as intended to help stabilize oil markets and protect the United States from supply disruptions, according to an Energy Department spokesman. The drawdown coincides with an interim peace agreement between the United States and Iran that reopens the Strait of Hormuz and seeks to end the 15‑week war.
Oil is being released through an exchange program in which companies borrow barrels and must return them with interest. The return rate has reached about 26%, generating more than $3 billion in savings for taxpayers. The agency also plans to refill the reserve with approximately 200 barrels, or 20 % more than the amount released, within the next year.