Strategic Petroleum Reserve At Lowest Level Since 1985
Last week, the U.S. Strategic Petroleum Reserve (SPR) dropped to 469.9 million barrels of crude– the lowest level since May 1985.
This occurred the same week that the Biden Administration announced that it is releasing the next Notice of Sale to supply additional barrels of crude oil from the SPR onto the global market, building on the more than 125 million barrels of oil that have already been sold.
An analysis from the Department of the Treasury estimates that the releases, along with coordinated releases from international partners, have reduced gasoline prices by about 40 cents per gallon compared to what they would have been absent these drawdowns.
The Administration is also announcing steps to repurchase oil for the SPR in future years, likely after FY2023, to help stabilize the market and encourage near-term supply.