US SPR Falls Below 300 Million Barrels, Oil Prices Surge Over 4%
The US Strategic Petroleum Reserve (SPR) has fallen below the 300 million barrel threshold for the first time since 1983. The SPR inventory dropped by approximately 6.1 million barrels to 298.3 million barrels in the week ending August 7.
This significant decline, combined with an impasse in negotiations over navigation through the Strait of Hormuz, propelled international oil prices to surge more than 4% intraday on Monday.
US West Texas Intermediate (WTI) crude futures briefly topped $81.30 per barrel, while Brent crude futures surged above $86.90.
The SPR's drop below 300 million barrels marks a critical juncture in a years-long trend of declining US strategic oil reserves. The establishment of the US SPR began after the oil crises of the 1970s, and for decades thereafter, the SPR was maintained at levels far exceeding current volumes.