US strategic oil reserve hits lowest level since 1983

U.S. Strategic Petroleum Reserve (SPR) inventories fell to 340.3 million barrels, the lowest level since 1983, the Department of Energy said. The decline comes after the United States and Iran reached an agreement to end the war and reopen the Strait of Hormuz.

Government emergency oil reserves decreased by 8.9 million barrels, marking the third-largest drawdown on record. The withdrawals are part of a U.S. plan to release 172 million barrels from the SPR to help lower fuel prices, which recently reached multi-year highs.

U.S. crude inventories have fallen sharply in recent weeks as refinery activity and exports increased to address supply shortages caused by the war with Iran. Total U.S. oil inventories, including both commercial stocks and the SPR, dropped by 79 million barrels to 776 million barrels, the lowest level since 2023, following the outbreak of the conflict in late February.

Storage levels at Cushing, Oklahoma—the main U.S. oil distribution hub and delivery point for West Texas Intermediate (WTI) crude futures—fell to 21.6 million barrels, approaching operational minimum levels and raising concerns about supply availability.

SPR inventories also fell below the levels recorded during the Biden administration, when reserves reached a low of 346.8 million barrels.