US Crude Oil Supplies Plummet to 45-Year Low Amid Strait of Hormuz Tensions
US crude oil supplies have hit a 45-year low due to ongoing tensions in the Strait of Hormuz. The US Strategic Petroleum Reserve, which is at its lowest level since 1983, can only provide 43 days' worth of crude oil supply, according to Bank of America Global Research data.
The Trump administration has been releasing oil from the reserves to mitigate rising energy costs caused by the conflict in the region. Since the Strait of Hormuz was effectively shut off to commercial traffic five months ago, global energy markets have become increasingly unstable, driving up the price of crude oil.
President Trump has committed to a domestic drawdown of 172 million barrels over a 120-day delivery window. So far, about 108.6 million barrels of crude oil have been released, with current inventory levels sitting at approximately 304.8 million barrels.