US SPR Falls Below 300 Million Barrels Amid Iran War

The US Strategic Petroleum Reserve (SPR) has fallen below 300 million barrels for the first time since it was filled in the early 1980s. This decline is largely due to Washington's release of oil from its stockpiles to cushion the impact of the war with Iran, with inventories dropping to a four-decade low.

Experts warn that further drawdowns could damage underground storage caverns and limit the SPR's ability to respond to future energy emergencies. The SPR has released at least 172 million barrels in response to the crisis, leaving it with about 243 million barrels once the drawdown is complete.

The Energy Department claims that roughly 70 million barrels must remain in the reserve to safely manage the caverns, but Amos Hochstein, a senior energy advisor to President Joe Biden, disputes this figure. He says that reducing the reserve to less than 300 million barrels risks damaging the caverns and making it difficult to resurrect the SPR.