U.S. Strategic Petroleum Reserve Reaches Lowest Level Since 1987, Reports Reuters

HOUSTON (Reuters) – The U.S. Strategic Petroleum Reserve (SPR) saw a decrease of 5 million barrels for the week ending May 13, according to data from the U.S. Department of Energy.

Stockpiles in the SPR have fallen to 538 million barrels, marking the lowest level since 1987. The data indicates that approximately 3.9 million barrels of sour crude were released into the market, alongside about 1.1 million barrels of sweet crude.

In March, President Joe Biden announced an unprecedented release from the U.S. emergency oil reserve, allowing for 1 million barrels per day of crude oil over six months in an effort to reduce soaring gasoline prices exacerbated by the ongoing conflict in Ukraine.

Prior to this announcement, the U.S. had already committed to releasing 30 million barrels of SPR oil in March and pledged to release an additional 50 million barrels in November.

U.S. oil prices have surged nearly 25% to around $114 per barrel amid concerns about a potential supply shortage. Retail gasoline and diesel prices have reached record highs this week as fuel demand approaches pre-pandemic levels, while the refining capacity has declined.

The release of 180 million barrels from the SPR is equivalent to roughly two days of global demand and marks the third instance in six months where Washington utilized the reserve.

Recent sales from the SPR included major companies such as Valero Energy Corp, Motiva, Exxon Mobil, Shell, Phillips, and Marathon Petroleum Corp.

In April, at least three vessels transporting crude oil from U.S. emergency stockpiles made their way to Europe, where refiners are actively seeking to replace Russian crude supplies, according to U.S. Customs data and industry sources.