US Oil Reserves at 40-Year Low: Will Prices Soar?
Market Strategist Ryan Detrick warns that oil prices could surge due to the dwindling US Strategic Petroleum Reserve (SPR). The SPR has dropped from 415 million barrels at the start of March to 286 million, its lowest level since the early 1980s. This depletion is a concern for Detrick, who notes that the reserves are not providing sufficient support to oil prices, which could reach $200 per barrel if not for the SPR drawdown.
The SPR serves as a buffer against sudden supply shocks in the oil market, and its rapid draining has left some economists concerned. Peter Schiff warned earlier about the potential impact of the SPR drawdown on oil prices, stating that if the SPR is empty by 2028, oil prices could be significantly higher.
The EIA raised its oil price forecasts for 2026 and 2027 due to rapidly falling global inventories, which reflect the loss of Middle Eastern supply. The prolonged Iran war has disrupted energy markets, pushing oil and fuel prices sharply higher as Tehran restricts Strait of Hormuz flows and targets regional energy infrastructure.