Oil Price headline: U.S. Strategic Petroleum Reserve Falls To 35-Year Low
By Charles Kennedy - Aug 22, 2022, 3:30 PM CDT
In March, the Biden administration authorized the release of 1 million bpd from the SPR over a period of six months in a bid to lower oil prices and to potentially boost domestic production through contracts with companies to purchase future oil at fixed prices. The SPR releases are a response to the disruption of global oil markets caused by Russia’s invasion of Ukraine and subsequent Western sanctions that have led to soaring oil and gas prices.
The final plan called for a total release of 180 million barrels of crude from the SPR to counter the inexorable increase in oil prices amid a tight market. The record-high release of crude oil from the SPR will end this fall.
In addition to the lowest inventory levels in the SPR since 1985, last Wednesday, the Energy Information Administration (EIA) estimated that crude oil inventories (excluding the SPR) had fallen by 7.1 million barrels.