US Oil Reserves Plummet to 44-Year-Low Amid Global Energy Crisis

The US Strategic Petroleum Reserve has hit its lowest level since 1982, according to Department of Energy data. The reserve shrank by over 3 million barrels of oil between August 21 and August 28, leaving it at 286.6 million barrels or about 40% of overall capacity.

The global energy shortage is driving the drawdown, with the largest supply disruption on record pushing US gasoline prices above $4 a gallon. Global oil prices climbed above $92 a barrel after reports emerged of an oil tanker being struck by projectiles off the coast of Oman.

The Strategic Petroleum Reserve was established in response to the Arab Oil Embargo of the 1970s, providing an emergency source of oil intended to protect the US against supply crunches. The reserve can reach up to 714 million barrels and is stored in high-security underground salt caverns along the gulf coastlines of Louisiana and Texas.