US SPR Hits Lowest Level Since 1983 Amid Ongoing Iran Tensions

The US Strategic Petroleum Reserve (SPR) has reached its lowest level since June 1983, according to data from the Department of Energy. The reserve now holds 331.2 million barrels of crude oil, down by 9.05 million barrels in a single week.

This significant drawdown is part of a US agreement to release 172 million barrels from the facility to help stabilize fuel prices. The government's emergency stash has seen a rapid decline due to strong export and refining demand for American oil since the U.S.-Iran war began at the end of February.

Overall, U.S. inventories have fallen by 96.2 million barrels to 758.5 million barrels, the lowest since 1985. The main storage hub for oil in Oklahoma, Cushing, has seen its inventory drop to around 20 million barrels, considered an operational low for the tank storage farm.

The Department of Energy says that the system of borrowing oil from the SPR with a premium return will help stabilize markets without any cost to U.S. taxpayers.