Crude oil reserves in the US Strategic Petroleum Reserve (SPR) have fallen below 300 million barrels, reaching the lowest level in over four decades. This comes amid pressure on global reserves caused by the war with Iran.
Last week, the volume of oil in the SPR decreased by 6.1 million barrels to 298.7 million barrels. The US Department of Energy released the relevant data on Monday. This is the lowest figure since January 1983.
President Donald Trump ordered the release of 172 million barrels in March after Iran restricted oil exports through the Strait of Hormuz, causing the largest disruption in crude oil supplies in history. The reduction in SPR reserves has raised questions about how close the reserve is to a critical level.
How much oil is left in the reserve
The minimum amount of oil required for the safe operation of the SPR is about 70 million barrels, a US Department of Energy representative told CNBC in July. David Goldwyn, who served as the State Department’s special envoy for international energy issues during the presidency of Barack Obama, stated that there is enough oil left in the reserve for another release if needed.
“I am not concerned about the stability of the reserve or our ability to carry out another release if necessary,” Goldwyn said in an interview with CNBC. Before the US and Israel attack on Iran on February 28, the SPR volume was about 415 million barrels. Its maximum allowed capacity is 714 million barrels.
The release of oil from the SPR is part of the coordinated actions of the International Energy Agency (IEA) countries to support the global oil market. In total, it is about the release of 400 million barrels — the largest deployment of crude oil reserves in the organization’s history.
In recent years, US presidents have increasingly resorted to large-scale releases from the SPR. In particular, President Joe Biden released 180 million barrels in 2022 to cope with instability in the energy market after Russia’s full-scale invasion of Ukraine. At that time, it was the largest release in the history of the SPR.
Source: CNBC
