US Strategic Petroleum Reserve falls 5.5 million barrels to lowest since 1983

Key Facts

1Oil stocks in the US Strategic Petroleum Reserve fell by 5.5 million barrels to their lowest level since 1983.

Amid ongoing global supply concerns and geopolitical tensions, the depletion of the US Strategic Petroleum Reserve (SPR) reinforces a bullish outlook for crude oil. According to Reuters, oil stocks in the SPR fell by 5.5 million barrels to their lowest level since 1983, reflecting persistent drawdowns and limited replenishment.

This decline coincides with draws in commercial inventories: the EIA weekly report on June 24 showed a 6.088 million barrel drop in commercial crude, exceeding the forecast of a 4.5 million barrel draw. The API also reported a 0.765 million barrel decline the prior week. The shrinking strategic buffer raises concerns about the US ability to respond to future supply disruptions, especially after large releases in 2022 following the Russia-Ukraine conflict.

With the SPR at a 42-year low, traders will watch for any replenishment announcements from the Department of Energy, which could tighten supply further. Attention is also on upcoming OPEC+ meetings and weekly US inventory reports. Heightened geopolitical risks could amplify price volatility, keeping crude markets sensitive to supply-side catalysts.