Key facts
- The U.S. Strategic Petroleum Reserve held 283.8 million barrels as of the week ending September 25.
- This level is the lowest since October 1982.
- The reserve has now set a new multi-decade low twice this year.
- A 172 million-barrel release authorized by President Trump in March initiated the current drawdown.
- The reserve is now testing its generally accepted operational minimum of 250 to 300 million barrels.
- About 133 million barrels of the drawdown were structured as swaps with Shell, Vitol, and Trafigura.
The U.S. Strategic Petroleum Reserve has fallen to its lowest level since October 1982, standing at 283.8 million barrels for the week ending September 25, according to Department of Energy data. This marks the second time this year the reserve has dropped below a multi-decade low, first falling below 300 million barrels in early August.
The current drawdown traces back to a 172 million-barrel release authorized by President Trump in March, as part of a coordinated 400 million-barrel release by 32 International Energy Agency member countries. The discharge began about a week later and was expected to take roughly 120 days. The administration has pledged to refill about 200 million barrels within a year at no cost to taxpayers.
Two different floors govern how far the reserve can fall. Federal law sets an operational minimum of 252.4 million barrels, while the generally accepted operational minimum is 250 to 300 million barrels to ensure efficient pumping and processing of oil. The reserve is now testing this level.
Energy analyst Ben Cahill of the Atlantic Council warned that the releases carry diminishing returns, stating that "at a certain point it becomes a self-defeating move, because releasing more oil into the market is overwhelmed by the perception that we're running out of options." Saul Kavonic of MST Marquee described the situation as "living on an oil market credit card," noting that stock draws, rather than new supply, have kept Brent crude under $110 through most of the crisis.
Approximately 133 million barrels of the drawdown are structured as swaps with Shell, Vitol, and Trafigura. These companies are contracted to return 1.25 barrels for every one they took, with deliveries scheduled to begin early next year.