US oil reserve hits 44-year-low amid Iran war, global energy shortage

Key Points:

• The U.S. Strategic Petroleum Reserve has fallen to its lowest level since 1982, with 286.6 million barrels remaining, about 40% of its 714 million barrel capacity, due to ongoing emergency oil releases amid a global energy shortage.
• The reserve decreased by over 3 million barrels in the week ending August 28, as the U.S. continues to draw down supplies to address surging gasoline prices and inflation fueled by the largest global oil supply disruption on record.
• The Strategic Petroleum Reserve, established after the 1970s Arab Oil Embargo, serves as an emergency oil source stored in underground salt caverns in Louisiana and Texas, with the president authorized to release oil to stabilize markets when necessary.
• Following the outbreak of the Iran war in February, the U.S. committed to releasing 172 million barrels as part of a coordinated 400 million barrel release by International Energy Agency member nations; to date, about 128 million barrels have been released from the U.S. reserve.
• Prior to the current crisis, the U.S. had only released petroleum from the reserve under emergency conditions four times since its establishment in 1975.