US Oil Reserves Plummet to Lowest Level Since 1983

The Strategic Petroleum Reserve (SPR), established in 1975 to protect the US from oil supply disruptions, has hit its lowest level in over 40 years. The current reserve stands at just 311 million barrels, a figure last seen in March 1983.

This is the 17th consecutive week of a weekly drawdown, with the SPR falling by another 5 million barrels last week alone. The continued escalation in the Persian Gulf and the impact of Russian-Ukraine attacks on each other's oil supplies have put significant pressure on the reserve, which may face major issues well into 2027.

The rise in crude oil prices is also fueling inflation concerns, a topic that will be discussed by the Federal Reserve Board today and tomorrow.