US Oil Reserve Hits 44-Year Low Amid Global Energy Crisis
The US Strategic Petroleum Reserve has reached its lowest level since 1982, according to data from the Department of Energy. The reserve shrank by over 3 million barrels of oil in the week ending August 28, leaving it at 286.6 million barrels or about 40% of overall capacity.
The drawdown is a result of global energy shortages and the ongoing conflict with Iran, which has disrupted oil supply chains and driven prices up. The largest global oil supply disruption on record has pushed US gasoline prices above $4 a gallon, rekindling inflation concerns and setting the stage for November's midterm elections.
The Strategic Petroleum Reserve was established in response to the Arab Oil Embargo of the 1970s, providing an emergency source of oil to protect the US against sudden supply crunches. The reserve can reach as many as 714 million barrels, stored in large underground salt caverns along the Gulf Coast.