US Strategic Oil Inventories Plunge to Critical Levels Amid Middle East Conflict

The US Strategic Oil Inventories are at critically low levels due to ongoing conflicts in the Middle East, data show. The amount of oil stored in strategic reserves is near the limit that would keep it functioning efficiently, with only 307 million barrels remaining.

Total US crude oil imports averaged 3.6 million barrels per day over the seven-day period ending July 24, down about 12% from year-ago levels, according to federal data.

The US has drawn on crude from the Americas for refinery feedstock, with Brazil delivering 269,000 bpd and Venezuela sending 673,000 bpd during the week ending July 24. However, these imports are not enough to offset the loss of supplies due to the conflict in the Middle East.

According to Hillary Stevenson, a vice president for energy intelligence at Industrial Info Resources, 'The SPR needs a minimum volume of crude to pump and process oil efficiently.' The generally accepted operational minimum for oil in the SPR is between 250 million and 300 million barrels.