US Oil Reserve Drained to Lowest Level Since 1970s
Washington's Strategic Petroleum Reserve (SPR) has been depleted to its lowest level since 1982, sparking concerns about oil market stability. The reserve, created after the 1970s oil crises, holds crude in underground salt caverns along the Texas and Louisiana coasts.
The SPR currently holds just 289.7 million barrels of oil, down from over 1 billion barrels at its peak. The Biden administration released a significant amount of oil from the reserve in coordination with international partners to calm markets during the Iran war.
However, this release has left the reserve with insufficient oil to meet current demands. The Department of Energy is concerned about the integrity of the wells due to ongoing construction and maintenance issues.
Analysts warn that the depleted SPR limits policy flexibility in case of future disruptions to the oil market. Oil prices could surge if the reserve is tapped further, harming the economy.