US Strategic Petroleum Reserve Approaches Multi-Decade Low as Middle East Crisis Drains Inventories

The U.S. Strategic Petroleum Reserve (SPR) has fallen to approximately 349.2 million barrels, nearing levels last seen during the Reagan administration in the 1980s, according to the Energy Information Administration.

Weekly withdrawals of nearly 9 million barrels have pushed reserves toward critical thresholds, with American Petroleum Institute CEO Mike Sommers warning on CNN that declining inventories paired with stagnant domestic production will result in “a significant impact at the pump” for American consumers.

Contractors work on crude oil pipelines at SPR facilities in Freeport, Texas.

The SPR reached 346.7 million barrels in July 2023 under the Biden administration, the most recent benchmark before current drawdown levels. Energy experts caution that continued depletion could strain emergency response capabilities, as approximately 20% of reserves must remain operational.

Market disruptions from the Iran-Israel conflict have accelerated reserve releases, with the Trump administration authorizing the drawdown of 172 million barrels since taking office. Under the previous administration, 243 million barrels were released to address pandemic-related supply chain issues and the Ukraine conflict.

GasBuddy analyst Patrick De Haan told Fortune that declining reserves limit future policy options, potentially creating a “slingshot for costs” if Middle East tensions persist. Energy prices rose 3.9% in May, with gasoline up 40.5% year-over-year and the energy index accounting for over 60% of the Consumer Price Index increase.

Under Secretary of Energy Kyle Haustveit noted that released barrels are being repurchased with premiums exceeding 25%, creating a temporary but costly borrowing mechanism for addressing immediate supply challenges.

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