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The Department of Energy reported a 3 million barrel decline in Strategic Petroleum Reserve stocks for the week ended July 10, bringing the total to 316.5 million barrels. According to the department, this represents the lowest inventory since April 1983, with the cumulative draw since late February reaching 98.9 million barrels following the start of the U.S.-Israeli war on Iran. Overall US crude inventories fell by 123.9 million barrels to 730.8 million barrels as of July 3, the lowest level since 1984, the data indicated.
S&P Global’s July 15 analysis confirmed the SPR figure and noted that Energy Department exchanges have slowed in recent weeks. A separate Government Accountability Office report flagged infrastructure challenges facing the reserve as it operates at reduced levels. The assessment found that prolonged use without adequate replenishment could limit future response capabilities in energy emergencies.
The Wall Street Journal reported on July 18 that shocks from the war with Iran and the Russia-Ukraine conflict have driven the reserve to its lowest point in more than four decades. The publication described the SPR’s storage in underground salt caverns located in Texas and Louisiana. It outlined the mechanism by which the reserve helps to mitigate the effects of major oil supply disruptions on domestic markets.
According to the US Energy Information Administration, the Strategic Petroleum Reserve was created in the mid-1970s to counter vulnerabilities exposed by the 1973 oil embargo. EIA statistics place the reserve’s design capacity at 714 million barrels, a benchmark that current holdings fall well short of after multiple rounds of releases. Historical series from the agency show inventories peaked above 700 million barrels in the late 2000s before declining.
The 2022 record release of hundreds of millions of barrels lowered the SPR to 40-year lows at the time, an EIA review of sales data confirmed. Subsequent partial refills have not restored the reserve to prior levels, leaving it at 316.5 million barrels following the latest draws. Reuters data from July 13 placed the post-February decline at nearly 99 million barrels as the releases continue to support market stability.
