U.S. Strategic Petroleum Reserve Nears Lowest Level Since Early 1980s Amid Continued Drawdowns

Another 8 million barrels of oil were withdrawn from the U.S. Strategic Petroleum Reserve (SPR) last week, bringing inventory levels close to Biden-era lows and placing the reserve near its lowest point since the early 1980s, according to reporting by Ben Werschkul for Yahoo Finance.

Oil storage tanks representing the declining U.S. Strategic Petroleum Reserve. (Photo: United States Department of Energy)

Government data shows the SPR fell to 357.1 million barrels for the week ending May 29, continuing a steady decline throughout May. Analysts expect further withdrawals through the summer.

The latest decline comes amid broader concerns about global energy supply tightness and geopolitical risks affecting major shipping routes.

Some reports referenced disruptions near the Strait of Hormuz, a key global oil transit chokepoint.

ExxonMobil vice president Neil Chapman stated at a recent conference that the market is “approaching unheard-of inventory levels,” warning that crude oil prices could rise significantly if supply constraints persist.

Overall U.S. crude inventories, including commercial and government reserves, reportedly declined by about 16 million barrels to 709.8 million barrels.