The U.S. Strategic Petroleum Reserve (SPR) is nearing its lowest levels since the 1980s, with 365.1 million barrels reported as of May 22, down from 374.2 million the previous week. This decrease of over 50 million barrels since February 28 is attributed to efforts to stabilize global energy markets amid the ongoing conflict with Iran. GasBuddy analyst Patrick De Haan has indicated that the reserve could reach levels last seen in August 1983 soon.
The SPR, established in 1975, serves as an emergency response tool to address significant disruptions in oil supplies. It has been utilized in various crises, including the 1991 Gulf War and the energy crisis following Russia's invasion of Ukraine in 2022, which resulted in a record drawdown of approximately 180 million barrels.
The current drawdown is part of a coordinated effort with other International Energy Agency member nations, which are collectively releasing 400 million barrels from their reserves. Experts, including Bob McNally from the Rapidan Energy Group, have noted that the SPR has been depleted for years and that refilling it will require time and congressional appropriations. Analysts have expressed concerns that as the reserve approaches the minimum operating level of 240 million barrels, it could impact the integrity of the stored oil and lead to upward pressure on prices in the future.
