Crude stocks in the U.S. Strategic Petroleum Reserve reached 283.8 million barrels in late September, according to Department of Energy data cited by the Energy Information Administration, marking the lowest level since October 1982.
The reserve had previously stood at 284.6 million barrels for the week ending September 18, down from 406.0 million barrels a year earlier. The reserve has now set a new multi-decade low twice in 2022, first falling below 300 million barrels in early August.
According to the source text, the current drawdown traces back to a 172 million-barrel release that President Trump authorized in March. This was part of a coordinated 400 million-barrel release by 32 IEA member countries, with discharge beginning about a week later and expected to take roughly 120 days. The administration pledged 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 sets an operational minimum of 252.4 million barrels, while the generally accepted operational minimum is 250 to 300 million barrels on hand to pump and process oil efficiently—a level the reserve 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 a self-defeating move, because releasing more oil into the market is overwhelmed by the perception that we’re running out of options.”
About 133 million barrels of the drawdown are structured as swaps with Shell, Vitol and Trafigura, who are contracted to return 1.25 barrels for every one they took, with deliveries scheduled to begin early next year. The decline reflects what analysts have described as reliance on stock draws rather than new supply to manage oil prices during the crisis.
Key facts
- SPR fell to 283.8 million barrels in late September 2022, the lowest level since October 1982
- The reserve fell below 300 million barrels in early August 2022, setting a new multi-decade low twice that year
- President Trump authorized a 172 million-barrel release in March 2022 as part of a coordinated 400 million-barrel IEA member release
- Federal law sets an operational minimum of 252.4 million barrels for the SPR
- About 133 million barrels involve swaps with Shell, Vitol and Trafigura, requiring return of 1.25 barrels for every barrel taken