US Strategic Petroleum Reserve Hits 40-Year Low

The US strategic petroleum reserve fell by 5.5 million barrels to 325.7 million barrels as of June 26, the lowest level since May 1983. According to the weekly report by the US Energy Information Administration (EIA), the country's strategic petroleum reserve dropped by 5 million 536 thousand barrels to 325 million 655 thousand barrels in the week ending June 26. Thus, the reserves have fallen to their lowest level since May 1983. The US strategic reserves have been declining since September 2021; about 275 million barrels, or approximately 45% of the stocks, were withdrawn over nearly two years (until August 2023). After that, the reserves began to be replenished, but the amount returned to the reserve in the past two and a half years was less than 70 million barrels. The current total level is still at nearly half of the 620 million barrels recorded in September 2021. US Energy Secretary Chris Wright announced in March that they plan to release an additional 170 million barrels of oil from the strategic reserve and then replenish it with 200 million barrels of purchases over the next year. If the planned additional withdrawal of 172 million barrels from the strategic reserve is completed, the remaining amount in the reserve could drop below 250 million barrels. If this scenario materializes, the current level would be the historic low in the statistics kept since August 1982.