US Oil Reserves Plummet to Lowest Level Since 1983

The U.S. Strategic Petroleum Reserve (SPR) has fallen to its lowest level since 1983, according to data released by the Department of Energy on Monday. The SPR's inventory declined by 6.1 million barrels last week, ending the week at 298.7 million barrels.

This marks a significant drop in inventories that were already low before the Iran war came into effect. The latest release follows a historic drawdown over the last several years, which began with the release of 180 million barrels authorized by the Biden administration in response to Russia's invasion of Ukraine in early 2022.

The SPR was established in 1975 under the Energy Policy and Conservation Act in response to the OPEC oil embargo of 1973-74. Its current capacity is around 714 million barrels, although it never reached its initial intended level of 1 billion barrels.