Why is the US oil reserve at a 44-year low as crude prices surge above $100?
US oil reserve hits a 44-year low as crude prices surge above $100, while rising gas prices and Middle East tensions add pressure to the oil market.
The US Strategic Petroleum Reserve (SPR) has dropped to its lowest level in nearly 44 years, sitting at 285.4 million barrels as of September 4. This is a steep decline, with the reserve losing 1.2 million barrels in a single week, bringing it down from 286.6 million barrels the week prior. The drop represents a significant loss of around 30% of the reserve's stock in just 12 months, from 405.2 million barrels a year earlier.
The reduction in SPR stocks is directly tied to the U.S. decision to release 172 million barrels of oil from the reserve. Despite this drop, crude prices have surged above $100, raising concerns about the U.S.'s emergency oil supply in case of another global supply disruption. US commercial oil inventories also fell by 400,000 barrels to 424.1 million barrels during the week ending September 4, though they are still around the normal level for this time of year.
The combination of lower SPR stocks and rising oil prices is a worrying sign for the US energy market.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
