U.S. Oil Reserve Hits Historic Low Amid Global Price Surge
The U.S. Strategic Petroleum Reserve has hit a 43-year low of roughly 340 million barrels, according to Energy Department data released Monday. This is down from its authorized capacity of around 700 million barrels.
The reserve's dwindling stockpile leaves the U.S. with less flexibility to respond to future supply disruptions. Patrick De Haan, head of petroleum analysis for GasBuddy, said that the reserve needs to have a minimum of 150-200 million barrels to function properly.
The Trump administration is moving forward with its plan to release 172 million barrels from the strategic reserve as part of a coordinated effort by nations around the world. This would be the second-largest release in the stockpile's history, leaving the reserve with about 243 million barrels.