The amount of oil in the US Strategic Petroleum Reserve has plunged to the lowest level since 1983, with 340.3 million barrels of crude remaining. This decrease is largely due to the Trump administration’s deployment of emergency oil to minimize the damage from the war with Iran.

Impact on the Economy

According to federal data, US officials released another 8.9 million barrels from the SPR last week alone. The SPR has emerged as a key tool for Trump officials to mitigate the harm of high energy prices to consumers, businesses, and the economy at large.

Andy Lipow, president of Lipow Oil Associates, stated that the Strategic Petroleum Reserve releases, combined with releases by other governments and China reducing its exports, have prevented the worst-case scenario of $150 oil from happening to date.

The SPR is down 75 million barrels, or 18%, since the war with Iran started in late February. At current levels, the SPR is a little less than half full, raising concerns about its ability to respond to future emergencies.

Mike Sommers, CEO of the American Petroleum Reserve, warned that the SPR must be at least 20% full to be operational. Lipow believes that SPR releases may have to slow once the Trump administration is done releasing the 172 million barrels it pledged in March to release.

Original reporting: KRDO (Colorado Springs metro) — read the source article.