US emergency oil stockpile plunges to lowest level since Reagan era amid West Asia war

New Delhi [India], June 16 (ANI): The US Strategic Petroleum Reserve tumbled last week to its lowest level since 1983 as the Trump administration continues to deploy emergency oil to minimize economic damage from the war with Iran.

Citing federal data released on Monday, a CNN news report highlighted that US officials released another 8.9 million barrels from the emergency stockpile last week alone. The news report mentioned that the Strategic Petroleum Reserve (SPR) held 340.3 million barrels of crude oil as of June 12, 2026, dropping below the prior historic low set in July 2023 under President Joe Biden following Russia’s invasion of Ukraine.

The last time the reserve held less oil than its current level was July 1983, a period when the 40th US President, Ronald Reagan administration was still filling the reserve for the first time, and the United States operated a significantly smaller economy.

The SPR has emerged as a key tool Trump officials use to mitigate the harm of high energy prices to consumers, businesses, and the wider economy. Back-to-back global conflicts wiped out a large chunk of the stockpile, which is down 75 million barrels, or 18 per cent, since the war with Iran started in late February.

At current levels, the emergency reserve stands at a little less than half full.

“The Strategic Petroleum Reserve releases, combined with releases by other governments and China reducing its exports, have prevented the Armageddon scenario of $150 oil from happening to date,” the news report quoted Andy Lipow, president of Lipow Oil Associates.

“If we were to get a major hurricane in the Gulf of Mexico that shuts production down for several weeks, that buffer would no longer be there,” Lipow said.

Lipow added that SPR releases may have to slow once the Trump administration finishes releasing the 172 million barrels it pledged to deploy back in March.

The rapid drawdown also marks a political shift. When launching his third run for the White House in 2022, President Donald Trump criticized Biden for draining the reserve ahead of that year’s midterm elections. However, Trump officials are now draining the SPR at a faster pace ahead of this year’s midterms.

Production officials warned that the stockpile faces operational limits if the current trajectory continues.

“The SPR must be at least 20% full to be operational,” warned Mike Sommers, CEO of the American Petroleum Reserve, during an interview last week on CNN’s The Lead. “We’re raising alarm bells right now.”

“We’re getting to levels where we are starting to be concerned,” Sommers added.

The emergency oil released since the conflict with Iran began will require replacement over time. However, the report mentioned that this replenishment will not occur in time for the peak of the hurricane season, leaving the domestic energy supply vulnerable to immediate weather disruptions. (ANI)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)