U.S. Strategic Petroleum Reserve Falls to Lowest Level Since 1982

The strategic petroleum reserve in the United States has reached its lowest level since 1982, according to the Energy Information Administration. As of the week ending September 18, the reserve held 284.6 million barrels, a decline from the previous week's 285.0 million barrels and a significant drop of 406.0 million barrels from the same period a year earlier.

The reserve has now hit a multi-decade low twice this year, falling below 300 million barrels and below its 1983 level in early August. This decline is primarily due to a 172 million-barrel release authorized by President Trump in March as part of a coordinated 400 million-barrel release by 32 countries in the International Energy Agency (IEA).

The discharge was expected to take around 120 days, with the administration promising to refill about 200 million barrels within a year at no cost to taxpayers. Federal law mandates an operational minimum of 252.4 million barrels, while experts suggest an efficient operational minimum of 250 to 300 million barrels. Energy analyst Ben Cahill from the Atlantic Council warns that such releases may become counterproductive as they can negatively impact market perception, especially when oil supply is already limited.

The decline in the reserve coincides with a significant drop in Hormuz oil flows, which are running at about a third of pre-war levels, and the persistent drawdown of stocks due to market demand rather than new supply. Of the total drawdown, approximately 133 million barrels are structured as swaps with Shell, Vitol, and Trafigura, which are obligated to return 1.25 barrels for every one they took, with deliveries set to commence early next year.