U.S. Strategic Petroleum Reserve Hits Multi-Decade Low

For the week ending September 18, the Energy Information Administration reported the Strategic Petroleum Reserve (SPR) held 284.6 million barrels, down from 285.0 million the prior week and far below the 406.0 million barrels recorded a year earlier. Department of Energy data show the inventory fell further the following week to 283.8 million barrels, the lowest level since October 1982. This marks the second multi-decade low this year, after the reserve first slipped below 300 million barrels and the 1983 benchmark in early August.

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The drawdown stems from a 172 million-barrel release authorized by President Donald Trump in March, which was part of a coordinated 400 million-barrel release pledged by 32 International Energy Agency (IEA) member countries. The discharge began roughly a week later and was slated to last about 120 days. The administration has pledged to replenish roughly 200 million barrels within a year, stating the refill would occur at no cost to taxpayers.

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Federal law sets an operational minimum for the SPR at 252.4 million barrels, while industry practice generally regards 250–300 million barrels as the range needed to pump and process oil efficiently. The current inventory is testing those thresholds. About 133 million barrels of the drawdown are structured as swaps with Shell, Vitol, and Trafigura, which are contractually obligated to return 1.25 barrels for every barrel taken; deliveries are scheduled to begin early next year.

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The low SPR level therefore raises questions about the United States’ capacity to respond to future supply shocks while balancing market stability.

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