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, according to Bank of America Global Research data. The country's Strategic Petroleum Reserve has not been this low since 1983, leaving the US with only 43 days' worth of crude oil supply.
The Trump administration is releasing oil from the reserves to combat rising energy costs caused by the closure of the Strait, which carries up to a fifth of the world's oil transports per day. In response to the crisis, President Trump has committed to releasing 172 million barrels of oil over a 120-day delivery window.
However, despite these efforts, crude oil prices surged nearly 5 percent on July 8, with Brent crude rising 5.2 percent and West Texas Intermediate (WTI) climbing 4.4 percent. The price hike has led to emergency energy rationing and conservation policies in several countries, including South Korea, Thailand, Vietnam, and Bangladesh.