U.S. Strategic Petroleum Reserve Falls to Lowest Level Since 1982
Strategic Petroleum Reserve Falls to Lowest Level Since 1982 Crude stocks in the U.S.
Strategic Petroleum Reserve stood at284.6 million barrelsfor the week ending September 18, according to the Energy Information Administration, down from 285.0 million the week before and 406.0 million a year earlier.
Department of Energy data show the reserve fell further the following week, to 283.8 million barrels, the lowest level since October 1982.
The reserve has now set a new multi-decade low twice this year, first falling below 300 million barrels, and below its 1983 level, in early August.
The current drawdown traces back to a172 million-barrelrelease President Trump authorized in March, part of a coordinated 400 million-barrel release by 32 IEA member countries.
Discharge began about a week later and was expected to take roughly 120 days, with the administration pledging to refill about 200 million barrels within a year at no cost to taxpayers.
Two different floors govern how far the reserve can fall.Federal law setsan operational minimum of 252.4 million barrels, while the generally accepted operational minimum is250 to 300 millionbarrels on hand to pump and process oil efficiently, a level it is now testing.
Ben Cahill, an energy analyst at the Atlantic Council, has warned the releases carry diminishing returns: "at a certain point it becomes aself-defeating move, because releasing more oil into the market is overwhelmed by the perception that we're running out of options." The decline lines up with what MST Marquee's Saul Kavonic called"living on an oil market credit card"earlier this month: Hormuz flows are still running at about a third of pre-war levels, and stock draws, not new supply, have kept Brent under $110 through most of the crisis.
About 133 million barrels of the drawdown are structured as swaps withShell, Vitol and Trafigura, who are contracted to return 1.25 barrels for every one they took, with deliveries scheduled to begin early next year.
Russia Tightens Secrecy On Energy Exports Russia Tightens Secrecy On Energy Exports Saudi Arabia Cuts Europe Off From October Crude as Gulf Exports Surge Bessent Says Strait of Hormuz Obsolete Within Two Years White House Weighs Defense Production Act as U.S.
Refineries Maxed Out Saudi Arabia Discovers 110 Million Tonnes of Uranium-Bearing Ore Strait of Hormuz Shipping Traffic Falls Further as Saudi Oil Flows Rise Energy Giants Are Betting Billions on a World of Longer Oil Routes Debunking the Viral Claim That America Has Only 14 Days of Oil Left Oil Above $100 Pushes U.S.
Fuel Prices to New Records The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment