Strategic Petroleum Reserve Storage at the Bryan Mound Site in Freeport, Texas. (Brandon Bell/Getty Images via Bloomberg News)
key takeaways:
- The Trump administration is set to release 172 million barrels from the Strategic Petroleum Reserve, cutting holdings by about 340 million barrels, which is near the lowest level since 1983.
- The cuts are aimed at reducing fuel prices driven by the Iran war, which have seen global crude oil prices rise by about 20% and US gasoline average about $4.07 a gallon.
- The Energy Department says it will replenish reserves through exchanges returning about 20% more oil within a year, although the low levels limit resilience to future disruptions.
U.S. emergency supplies of crude have fallen to the lowest level since 1983 as the Trump administration moves toward completing its plan to release 172 million barrels to ease rising fuel prices caused by the war in Iran.
The Strategic Petroleum Reserve, created after the Arab oil embargo in the early 1970s, has fallen to a record low of about 340 million barrels, according to the Energy Department. data Released on 15 June.
The US Department of Energy announced its plan to release oil from the strategic reserve in March as part of a coordinated effort by countries around the world, less than two weeks after the US and Israel launched attacks on Iran.
If completed, it would be the second largest release in the history of the reserve, leaving the reserve at about 243 million barrels, or about a third of its authorized capacity. Depleting stockpiles leave the United States less flexible to respond to future supply disruptions.
An Energy Department spokesperson said the administration is managing the reserve the way it was intended to be used: to help stabilize oil markets, protect the US from supply disruptions and make the country more energy secure.
The administration is releasing the oil through a swap program that essentially involves lending barrels to companies that eventually must pay them back with interest. An Energy Department spokesperson said the return rate so far has been about 26%, potentially saving more than $3 billion for taxpayers.
NEW: Strategic Petroleum Reserves fell to their lowest level since 1983 last week, ending Biden’s 2023 bottom line. pic.twitter.com/m5ZxQuCeeV
– Matt Egan (@MattEganCNN) 15 June 2026
The agency says it will replenish the reserve within the next year with about 200 barrels, or 20% more than has been released.
When Trump took office 16 months ago, the emergency oil stockpile was already significantly depleted.
Former President Joe Biden’s administration withdrew about 290 million barrels from the system through a series of releases, including after Russia’s invasion of Ukraine. Republicans argued at the time that the move was aimed at lowering gasoline prices ahead of the 2022 midterm elections rather than responding to a real supply emergency.
Trump promised to replenish the reserve, which has a capacity of about 700 million barrels, while criticizing Biden for depleting it.
Global crude oil futures have risen nearly 20% since the war began, pushing U.S. gasoline prices to an average of about $4.07 a gallon. It is putting political pressure on Trump ahead of the midterm elections in November that will determine whether his party retains control of the US Congress.
