U.S. Oil Reserve Hits 40-Year Low, Caverns at Risk

The U.S. Strategic Petroleum Reserve has fallen to its lowest level in four decades, dropping below 300 million barrels for the first time since the early 1980s as the government releases stored crude to counter global supply disruptions caused by the war with Iran. The decline, part of a 172-million-barrel release authorized by President Donald Trump, is set to push the reserve down to approximately 243 million barrels once the drawdown is complete.

Data from the Department of Energy showed the reserve stood at 293.4 million barrels after a 5.3 million barrel decrease last week, marking a steep fall from the 415.4 million barrels recorded in mid-March before the current crisis. The releases aim to offset sharply reduced traffic through the Strait of Hormuz, a critical chokepoint for global oil transit, where vessel passages have fallen to fewer than 100 per week amid ongoing hostilities. Despite the releases, domestic gasoline prices have reached a record average of over $4.07 per gallon for mid-August, underscoring the persistent market pressure.

The reserve, established in 1975 after the Arab oil embargo, stores crude in 60 underground salt caverns across four sites in Texas...