US strategic oil reserve drops to 298.7 mln barrels, lowest since 1983
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The U.S. Strategic Petroleum Reserve has fallen to 298.7 million barrels, its lowest level since January 1983, as emergency releases attempt to mitigate supply disruptions from the closure of the Strait of Hormuz. National average gasoline prices have risen to $4.01 per gallon, 87 cents higher than a year ago, with California drivers paying $5.59. The reserve is projected to drop to 243 million barrels once the current drawdown completes, even as Iran demands major concessions to reopen the critical waterway.
Reserve Drawdown
The SPR held 415 million barrels before the U.S.-Israel strike on Iran in February closed the Strait of Hormuz. Weekly data from the U.S. Department of Energy show a 6.1-million-barrel drop in the latest period, bringing reserves to 298.7 million barrels. The total capacity is 714 million barrels, leaving the reserve at 42% full. A former Obama administration official said he was 'not worried about the stability of the reserve' despite the need for a minimum 70 million barrels to operate safely.
Gasoline Prices
The national average for a gallon of regular gasoline hit $4.01, up from $3.14 a year ago, according to AAA data. California recorded an average of $5.59 per gallon. The IEA-coordinated release of 400 million barrels by 32 member nations, with 290 million delivered by July, has not yet stabilized fuel costs.
Iranian Demands
Iran's Supreme National Security Council listed conditions for reopening the Strait of Hormuz, including an end to U.S. military operations, withdrawal of naval forces, lifting of sanctions, release of frozen assets, and payment of reparations. The Trump administration has shown no willingness to accept these terms, prolonging the standoff.
What's Next
The U.S. DOE is expected to release additional barrels, pushing the SPR down to approximately 243 million barrels as the current program concludes. It remains unclear how long the stalemate will last or whether further emergency measures will be required.
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US strategic oil reserve drops to 298.7 mln barrels, lowest since 1983
