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🇹🇼 Taiwan /Economy & Trade

US oil reserves hit lowest level since 1983

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The U.S. Strategic Petroleum Reserve (SPR) has fallen to 340.3 million barrels, its lowest level since 1983.
  • The reserve decreased by 8.9 million barrels in a recent period, the third-largest drop in history, as part of a deal to lend 172 million barrels to help lower fuel prices.
  • Republican lawmakers question the large releases, suggesting they are used as a political tool and could harm the reserve's salt cavern structures, a claim the administration denies.

The United States' Strategic Petroleum Reserve (SPR) has hit a historic low, plummeting to 340.3 million barrels. This marks the lowest inventory level recorded since 1983, according to data released by the U.S. Energy Department.

In a significant drawdown, the government's emergency crude oil stockpile decreased by 8.9 million barrels, representing the third-largest reduction ever. This move is part of an agreement where the U.S. will lend 172 million barrels from the reserve. The stated aim is to help curb the surge in fuel prices, which had recently climbed to multi-year highs.

Overall U.S. crude inventories, including both commercial stocks and the SPR, have also seen a substantial decline. They have fallen by 79 million barrels to 776 million barrels, the lowest point since 2023. This depletion is partly attributed to robust demand for U.S. oil in refining and exports, as the market seeks to fill supply gaps created by the conflict in Iran, which erupted in late February.

Now that the conflict with Iran is over, we are going to focus on Ukraine, see if we can get that done.

— Donald TrumpSpeaking to reporters on the sidelines of the G7 summit, Trump stated the U.S. would shift its focus to resolving the situation in Ukraine after the Iran issue is settled.

Concerns about supply tightness are mounting as inventories at Cushing, Oklahoma, a key storage hub and the pricing point for West Texas Intermediate crude futures, have dropped to 21.6 million barrels, nearing operational lows. The SPR's current inventory level also falls below that seen during former President Biden's administration, when reserves touched a low of 346.8 million barrels.

Republican lawmakers have voiced strong criticism, questioning the government's repeated large-scale releases of strategic resources. Following a previous sale of 180 million barrels due to the Russia-Ukraine war, they argue that such actions are being used as a "political tool." They also express concern that these releases could compromise the integrity of the reserve's vulnerable salt cavern structures. The current administration has vehemently denied these allegations.

Now that the conflict with Iran is over, we are going to focus on Ukraine, see if we can get that done.

— Donald TrumpTrump mentioned that he had a good phone call with Russian President Vladimir Putin and Ukrainian leader Volodymyr Zelenskyy, noting that both were open to peace.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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