US oil reserves slump to lowest level since 1982

The US Strategic Petroleum Reserve's crude oil stocks plummeted to their lowest level since 1982, dropping by approximately 5.3 million barrels to 293.4 million barrels, according to Energy Department data released on Monday. This decline is part of a US commitment to release 172 million barrels from the stockpile, following an agreement with international partners.

The Strategic Petroleum Reserve, established in 1975, was designed to mitigate future supply disruptions, most notably after the 1973 oil embargo. The reserve approached its maximum capacity of 727 million barrels in December 2009, when it held 726.6 million barrels. The US president has the authority to tap into the stockpile in response to significant oil disruptions that could threaten the US economy, including during the Russia-Ukraine conflict.

President Trump's administration has also pursued measures to address petrol costs amid the Iran war, which has constrained energy supply from the Middle East due to the closure of the Strait of Hormuz. US Energy Secretary Chris Wright expressed intent to discuss with US companies ways to increase refinery production and alleviate petrol prices at the pump.

Currently, the average driver spends $4.06 per gallon ($1.07 per liter) on petrol, a significant increase from $3.13 at the same time last year, as reported by automotive group AAA. During a rally in New York, President Trump stated that Americans would need to endure higher petrol prices due to the ongoing Iran war deadlock, emphasizing that the Middle East state is a top sponsor of terrorism and poses a nuclear threat.