U.S. SPR Drops 5.5 Million Barrels to 325.7 Million, Pressuring Brent Oil Fund
BNO•The U.S. Strategic Petroleum Reserve fell by 5.5 million barrels to 325.7 million barrels, its lowest since May 1983, tightening supply. Iraq’s push for larger OPEC quotas and a White House economist’s forecast of surging output suggest downward price pressure despite Hormuz supply risks.
1. Strategic Petroleum Reserve Drawdown
The Department of Energy reported a 5.5 million barrel reduction in the U.S. Strategic Petroleum Reserve, leaving it at 325.7 million barrels. This marks the lowest stock level since May 1983, reflecting continued sales aimed at managing domestic fuel costs.
2. Iraq’s OPEC Quota Push
Facing revenue shortfalls from the Iran war and boosted by fresh investments from major oil companies, Iraq is seeking a larger production quota within OPEC. Approval of a higher quota could introduce additional barrels per day into the global market once finalized.
3. Price Outlook and Supply Risks
A White House economist forecast an unprecedented surge in oil output that may drive prices down despite current supply tightening. Persistent risks to shipping through the Strait of Hormuz and traders’ attention to the 52-week moving average highlight ongoing market caution.
