US Oil Reserve Hits Record Low as Trump Tries to Ease Fuel Prices

The United States' emergency oil reserve has dropped to its lowest level since 1983, falling to approximately 340 million barrels. This near-record low is attributed to the Trump administration's plan to release 172 million barrels from the Strategic Petroleum Reserve (SPR) to ease surging fuel prices caused by the war in Iran.

The SPR was created after the Arab oil embargo of the early 1970s and has a capacity of roughly 700 million barrels. The reserve needs to have a minimum of 150-200 million barrels to function properly, according to Patrick De Haan, head of petroleum analysis for GasBuddy.

The administration's plan involves releasing oil through an exchange program that essentially loans barrels to companies with the promise of return with interest. So far, the return rate has been about 26%, resulting in potentially more than $3 billion in savings for taxpayers.