US oil reserves slump to lowest level since 1982

The US Strategic Petroleum Reserve's crude oil stocks dropped to their lowest level since 1982, with 293.4 million barrels held as of last week, down by approximately 5.3 million barrels. This reduction is due to an agreement to release 172 million barrels from the stockpile. In March, the US, along with other International Energy Agency members, tapped into their reserves to stabilize the energy market following supply disruptions in the Middle East.

Established in 1975 to mitigate future supply disruptions after the 1973 oil embargo, the Strategic Petroleum Reserve neared its maximum capacity of 727 million barrels in December 2009. The president holds the authority to utilize the stockpile in case of significant oil disruptions, such as those caused by the Russia-Ukraine conflict.

The administration also made additional purchases to refill the stockpile, surpassing 50 million barrels. US President Donald Trump's administration has been working to alleviate petrol costs amid the Iran war, which has constrained energy supply from the Middle East due to the closure of the Strait of Hormuz. Only three vessels passed through the waterway on Sunday, compared to five on Saturday, according to Kpler data.

US Energy Secretary Chris Wright expressed intent to discuss with US companies about enhancing refinery production to reduce petrol prices at the pump. Currently, the average driver spends $4.06 per gallon ($1.07 per litre) on petrol, compared to $3.13 the same time last year, as reported by automotive group AAA. During a rally in New York, President Trump stated that Americans must accept higher petrol prices due to the Iran war deadlock, emphasizing that Iran is the world's leading state sponsor of terrorism and does not want it to acquire a nuclear weapon.