US Strategic Petroleum Reserve drops to 293.4 million barrels, lowest since 1982
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The US Strategic Petroleum Reserve falls to 293.4 million barrels, its lowest level since 1982, after dropping 5.3 million barrels last week. Gasoline prices average $4.06 a gallon, the highest for mid-August on record, while the administration says up to 172 million barrels could be released in total. The decline comes amid a standoff with Iran and reduced tanker traffic through the Strait of Hormuz.
Key Facts
- The reserve dropped 5.3 million barrels last week to 293.4 million barrels, according to US Department of Energy data released Monday.
- US gasoline averaged $4.06 a gallon on Monday, the highest mid-August price on record, according to AAA.
- About 120 million barrels have been released from the SPR since early April, an almost 30 percent drawdown; the Trump administration says up to 172 million barrels could be released in total.
- The SPR is at its lowest level since December 1982, when the reserve was first being filled under President Reagan.
- Fewer than 100 tanker crossings moved through the Strait of Hormuz last week, compared with more than 120 a day before the war, according to Kpler.
Strategic Reserve Drawdown
The US Department of Energy reported Monday that the Strategic Petroleum Reserve fell by 5.3 million barrels last week to 293.4 million barrels. The decline extends a fifth month of releases that began in March, when the Trump administration announced the drawdown to steady global energy markets. Since early April, the reserve has fallen by an average of 6.3 million barrels each week. The SPR has surpassed Biden-era lows and now stands at its lowest level since December 1982, when it was being filled under President Reagan.
Gas Prices and Releases
US gasoline averaged $4.06 a gallon on Monday, according to the American Automobile Association. That is the highest mid-August price on record, AAA data show. About 120 million barrels have been released from the SPR since early April, an almost 30 percent drop. The Trump administration has said up to 172 million barrels could be released in total.
Hormuz Disruption and Reserve Floor
Further declines come as the standoff with Iran shows no signs of ebbing, with Washington and Tehran in disagreement about whether talks are happening and the Strait of Hormuz under blockade. Shipping data from Kpler show fewer than 100 crossings in the Strait of Hormuz last week, mostly through Iran's preferred route. Before the war, more than 120 crossings took place on an average day, and about one-fifth of the globe's oil passed through the waterway. The Trump administration says hundreds of millions more barrels can be released and that just 70 million barrels must remain in the reserve to safely manage the caverns. Amos J. Hochstein, a former Biden special presidential coordinator, told CNBC that lowering the reserve much further would compromise it to "the point of never resurrecting it."
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US Strategic Petroleum Reserve drops to 293.4 million barrels, lowest since 1982
