US Strategic Petroleum Reserve falls to 285 million, lowest since 1982

The US Strategic Petroleum Reserve fell by 403,000 barrels last week to 285 million barrels, the lowest level since November 1982. This was the 25th consecutive weekly decline, the longest streak since the 2021–2023 drawdown period. The SPR has decreased by 131 million barrels over this stretch, equal to a 46% drop. In 2020 the SPR held 650 million barrels, 128% above current levels. Commercial crude stocks excluding the SPR also declined by 640,000 barrels to 423.4 million barrels, the lowest since late July.

Implications

- Diminished emergency reserves reduce the buffer against supply disruptions and raise the probability of oil price volatility.
- Higher energy prices can lift headline inflation and interest-rate expectations, a headwind for risk assets including cryptocurrencies.