US strategic oil reserve falls to lowest level since 1982

Crude oil stocks in the US Strategic Petroleum Reserve fell by about 5.3 million barrels last week to their lowest level since 1982, government data showed Monday.

The reserve contained 293.4 million barrels of crude oil as of Aug. 14, down from 298.7 million barrels a week earlier, according to US Department of Energy data.

The latest total comprised 100.9 million barrels of sweet crude and 192.5 million barrels of sour crude, the data showed.

Historical data from the US Energy Information Administration showed that the reserve last held less oil in December 1982.

Inventories totaled 293.2 million barrels on Dec. 31 of that year before rising to 294.8 million in the first week of January 1983, according to the agency.

The Strategic Petroleum Reserve is now filled to about 41% of its authorized storage capacity of 714 million barrels.

The reserve, established in 1975 following oil supply shocks in the previous decade, stores crude oil in underground salt caverns at four sites along the Gulf coasts of Texas and Louisiana.

The latest decline came as the Energy Department continued releasing crude under an emergency program announced in March in response to supply disruptions stemming from the conflict with Iran and restricted shipments through the Strait of Hormuz.

President Donald Trump authorized the release of 172 million barrels from the reserve as part of a coordinated effort by International Energy Agency member countries to put 400 million barrels of oil and refined products on the global market.

US strategic inventories stood at about 415.4 million barrels in mid-March, meaning the stockpile has since declined by about 122 million barrels.

Energy Department figures showed that 11.4 million barrels had been released from the reserve so far in August, following withdrawals of 17.4 million barrels in July, 33 million in June and 39.4 million in May.

The reserve has a nominal maximum drawdown capacity of 4.4 million barrels per day, although the Energy Department said it takes about 13 days for oil to reach the market following a presidential decision.