U.S. Releases 8.9 Million Barrels from Strategic Petroleum Reserve, Bringing Stockpile to 340.3 Million
Federal data show the reserve at its lowest level since July 1983 after an 8.9-million-barrel release last week. Withdrawals began after the Iran conflict started in late February.
Washington ExaminerS. 3 million barrels of crude, the lowest level recorded since July 1983. 9 million barrels last week continues a series of withdrawals that began after the Iran conflict started in late February.
The reserve has lost 75 million barrels, or 18 percent, since those releases began. The Trump administration pledged in March to release a total of 172 million barrels to ease fuel price increases tied to the conflict. Officials have described the releases as a tool to limit the impact of higher energy costs on consumers and businesses.
The conflict has removed more than 11 million barrels per day from global trade, according to one report. The reserve stood at roughly half full before the most recent withdrawals. One industry executive warned that the reserve must remain at least 20 percent full to stay operational.
The same executive told reporters the current trajectory has prompted internal alarm. Analysts noted that replacement of the released oil will not occur before the peak of hurricane season in the Gulf of Mexico. A prolonged shutdown of Gulf production could leave limited buffer stocks available.
" — Andy Lipow, president of Lipow Oil Associates Another report stated the administration is releasing oil at a faster pace than occurred under the prior administration ahead of this year’s midterms. The reserve last reached comparable levels during the early Reagan administration when the United States maintained a smaller economy.
