The US Strategic Petroleum Reserve dropped by 8 million barrels last week to 357.1 million barrels, nearing its lowest level since 1983 and now at half its 714 million-barrel capacity. US total crude reserves fell 16 million barrels to 709.8 million, prompting ExxonMobil forecasts of $150–$160 per barrel if shortages persist.
The US Strategic Petroleum Reserve fell by 8 million barrels last week, reaching 357.1 million barrels for the week ending May 29. This level nears the 345.7 million‐barrel low recorded in August 1983 during its initial build-up.
Including commercial stocks, total US crude reserves declined by 16 million barrels from early April to 709.8 million barrels. This drop follows a broader drawdown that saw reserves fall from 878 million barrels in early April.
ExxonMobil executives warn that “unheard-of inventory levels” could drive crude prices toward $150–$160 per barrel if supply shortages persist. Concerns over energy security have intensified amid a de facto blockade of the Strait of Hormuz.
The SPR’s 714 million-barrel capacity now sits at roughly 50% utilization, and refilling is expected to take years. Policymakers face limited flexibility to cushion future supply shocks as buffer stocks approach historic lows.
