US Oil Inventory Plunges to Lowest Level in Half a Century

The United States has only 41 days of oil inventory left, its lowest level in half a century. This is according to Bank of America's estimates, which show that the country's average crude oil inventories have been declining rapidly since 1982.

The US Energy Information Administration reported that combined commercial crude and Strategic Petroleum Reserve holdings stood at 722.2 million barrels for the week ended August 14th. This is a decline of 101.9 million barrels, or 12.4%, from a year earlier.

While commercial inventories have increased by 8.1 million barrels from last year, the Strategic Petroleum Reserve has contracted by 110 million barrels to only 293.4 million barrels. This rapid depletion of reserves lowers Washington's discretionary capacity to absorb another prolonged international supply disruption.