America’s emergency oil stockpiles hit lowest level in 43 years

The amount of oil held in the US Strategic Petroleum Reserve has fallen sharply, dropping last week to its lowest level since 1983, as the Trump administration continues to release emergency barrels in an effort to cushion the economic impact of the conflict with Iran, CNN reports.

Federal figures published on Monday, June 15, show that US authorities released an additional 8.9 million barrels from the SPR over the past week alone.

That reduction brings total emergency stocks down to 340.3 million barrels of crude, breaking the previous modern low recorded in July 2023 under President Joe Biden, following Russia’s invasion of Ukraine.

The last time reserves were lower than current levels was in July 1983, when the Reagan administration was still in the early stages of building the reserve and the US economy was significantly smaller.

In recent months, the SPR has become a central policy lever for Trump officials aiming to limit the economic fallout of rising energy costs for households, businesses, and the broader economy.

“The Strategic Petroleum Reserve releases, combined with releases by other governments and China reducing its exports, have prevented the Armageddon scenario of $150 oil from happening to date,” said Andy Lipow, president of Lipow Oil Associates.

A series of conflicts over the past period has also significantly drawn down reserves.

Overall, the SPR has fallen by about 75 million barrels, or 18%, since the escalation of the war with Iran began in late February.

When he launched his third presidential campaign in 2022, Donald Trump criticized Joe Biden for drawing down the SPR ahead of that year’s midterm elections. However, Trump administration officials are now depleting the reserve at an even faster rate ahead of this year’s midterms.

At present levels, the SPR is just under half full. Mike Sommers, CEO of the American Petroleum Reserve, warned last week that the reserve must remain at least 20% full to stay operational.

“We’re raising alarm bells right now,” Sommers told CNN’s Phil Mattingly on The Lead. “We’re getting to levels where we are starting to be concerned.”

By Jeyhun Aghazada