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Amid escalating geopolitical tensions in the Middle East, the US Strategic Petroleum Reserve (SPR) is approaching its lowest levels since the Reagan era in the 1980s. According to reports, the Trump Administration has drained 66 million barrels from the reserve since the war in Iran began. This move aims to manage supply disruptions and price volatility caused by the ongoing conflict, significantly reducing the US cushion against further energy shocks.
This sharp decline in reserves comes as energy markets face increasing pressure, with recent American Petroleum Institute (API) data showing larger-than-expected draws in commercial inventories as well. Compared to previous periods, current SPR levels leave the US with limited capacity to intervene in the market, a factor experts believe supports higher oil prices due to the shrinking emergency supply buffer.
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Sign InLooking ahead, traders are closely watching the EIA Weekly Petroleum Report scheduled for June 3, 2026, which previously showed a significant draw of -7.974 million barrels per market data. Investors should monitor WTI and Brent crude levels, as continued SPR drawdowns may push prices to test new resistance levels if military escalation in the region persists.