US strategic oil reserves fall to lowest level since 1983

Crude oil stocks in the US Strategic Petroleum Reserve (SPR) fell by 6.1 million barrels last week to their lowest level since 1983, according to Department of Energy data released Monday.

The reserve held 298.7 million barrels as of Aug. 7, comprising 105.3 million barrels of sweet crude and 193.4 million barrels of sour crude.

The latest decline followed a draw of about 2.8 million barrels in the previous week, when inventories stood at 304.8 million barrels.

The drawdowns are part of Washington’s commitment to release 172 million barrels from the SPR under a coordinated action by International Energy Agency members to address global supply disruptions and elevated energy prices.

The broader initiative involves the release of 400 million barrels of oil and refined products from participating countries’ emergency reserves.

The Energy Department has largely structured the US releases as exchanges, requiring companies receiving crude to return the borrowed volumes with additional barrels as a premium at a later date.

Located in underground salt caverns along the Gulf coasts of Texas and Louisiana, the SPR has an authorized storage capacity of about 714 million barrels and a maximum nominal drawdown capability of 4.4 million barrels per day.