U.S. Strategic Petroleum Reserve Falls to Lowest Level Since 1982
2 hours ago
- U.S. Strategic Petroleum Reserve fell to 283.8 million barrels, the lowest since October 1982, after hitting new multi-decade lows twice in 2023.
- The drawdown stems from a 172 million-barrel release authorized by President Trump in March, part of a coordinated 400 million-barrel release by 32 IEA countries.
- Federal law sets an operational minimum of 252.4 million barrels, but the generally accepted minimum is 250-300 million barrels, which the reserve is now testing.
- Energy analysts warn that releases have diminishing returns, as perception of running out of options may overwhelm market impact.
- The decline is likened to 'living on an oil market credit card,' with stock draws keeping Brent under $110 during the crisis.
- About 133 million barrels of the drawdown are swaps with Shell, Vitol, and Trafigura, who must return 1.25 barrels for every one taken, starting early next year.