Continuing on with its plan of releasing 1 million barrels per day, the United States has seen its Strategic Petroleum Reserve fall below 500 million barrels–its lowest level in more than three decades.
Based on the latest data from the US Energy Information Administration, the country’s reserves were 511.6 million barrels for the week ended June 10. Preliminary data from the US Energy Department report a release of 6.9 million barrels during the last week. Based on an average 1-million barrel per day release, it’s estimated that the reserves are now around 497 million barrels.
The last time the reserves were below the 500-million-barrel mark was in May 1986.
In March 2022, US President Joe Biden announced the plan to release oil resources from reserves at 1 million barrels per day, expected to last for six months. The move is expected to taper down rising local oil prices as the country stands in a global skirmish on energy resources with Russia.
This is on top of the White House’s move in November 2021 to release 50 million barrels of oil from its reserves, saying it is a move in parallel with other energy-consuming countries like China, India, Japan, the Republic of Korea, and the United Kingdom. But OPEC+ officials warned that it might reconsider oil production plans to address the releases from reserves.
Information for this briefing was found via EIA and Twitter. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.