Strategic Petroleum Reserve Approaches Reagan-Era Lows Amid Ongoing Iran Conflict
FOX Business White House correspondent Edward Lawrence explains how soaring gas and energy prices have driven inflation higher than wage growth, while President Donald Trump’s oil reserve strategy aims to ease pressure.
The U.S. Strategic Petroleum Reserve (SPR) is nearing Biden-era lows, approaching levels not seen since the Reagan administration. Recent data from the U.S. Energy Information Administration’s petroleum status report for the week ending June 5 indicates that the SPR has fallen to 349.2 million barrels, with nearly 9 million barrels being tapped each week.
The last time reserves were this low was in July 2023, when the SPR recorded 346.7 million barrels. If the decline continues, U.S. emergency crude oil inventories could hit a multi-decade low not seen since August 1983.
Energy market experts are raising alarms about this depletion, particularly as the Trump administration draws heavily on domestic reserves to counter the effective closure of the Strait of Hormuz amid ongoing tensions in Iran.
“This should be very concerning to every American consumer,” stated American Petroleum Institute President and CEO Mike Sommers during a CNN interview. “As those inventories decrease and production isn’t increased, you’re going to start seeing a significant impact at the pump.”
A contractor works on a crude oil pipeline at the U.S. Department of Energy’s Bryan Mound Strategic Petroleum Reserve in Freeport, Texas. (Getty Images)
“That’s going to happen over time,” Sommers cautioned, “but again, it’s because of American production that we haven’t seen those same price surges that you’ve seen in other parts of the world.”
“It’s a pretty monumental number to hear multi-decade lows reached,” remarked GasBuddy head of analysis Patrick De Haan in an interview with Fortune. “The longer this goes on, the fewer tools the administration has in dealing with it, and the more risk there is of a slingshot effect on costs.”
American Petroleum Institute CEO Mike Sommers joins ‘Mornings with Maria’ to warn that shrinking U.S. oil inventories and global supply disruptions could lead to higher gas prices for American consumers.
Under Biden-era leadership, the SPR has declined by 243 million barrels to address pandemic-era supply chain disruptions and the Russian invasion of Ukraine, according to a report by Fortune. In recent months, the Trump administration has authorized the release of 172 million barrels due to the ongoing conflict with Iran.
Energy prices rose by 3.9% in May amid disruptions to Middle Eastern oil supplies, with prices up 23.5% over the past year. The Bureau of Labor Statistics noted that the energy index accounted for over 60% of the overall consumer price index (CPI) increase in May. Gasoline prices surged by 7% on a monthly basis in May and are up 40.5% compared to a year ago.
“We’re raising alarm bells right now. We’re at about 350 million barrels left in the Strategic Petroleum Reserve. You need to have about 20% of that left for it to be operational, so we’re reaching levels that are concerning,” Sommers emphasized.
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Fox News chief national security correspondent Jennifer Griffin reports on President Donald Trump stating that Iran shot down a U.S. Apache helicopter over the Strait of Hormuz on ‘Kudlow.’
“The only thing that we can do in the short term to fix this problem is to get the Strait [of Hormuz] open as quickly as possible,” Sommers concluded.
Under Secretary of Energy Kyle Haustveit told FOX Business’ Edward Lawrence on Wednesday: “We’re borrowing the barrels for a near-term supply challenge, but in return, those receiving the barrels are bringing more back. On average, we’re seeing over a 25% premium.”
FOX Business’ Eric Revell contributed to this report.
FOX Business White House correspondent Edward Lawrence explains how soaring gas and energy prices have driven inflation higher than wage growth, while President Donald Trump’s oil reserve strategy aims to ease pressure.
The U.S. Strategic Petroleum Reserve (SPR) is nearing Biden-era lows, approaching levels not seen since the Reagan administration. Recent data from the U.S. Energy Information Administration’s petroleum status report for the week ending June 5 indicates that the SPR has fallen to 349.2 million barrels, with nearly 9 million barrels being tapped each week.
The last time reserves were this low was in July 2023, when the SPR recorded 346.7 million barrels. If the decline continues, U.S. emergency crude oil inventories could hit a multi-decade low not seen since August 1983.
Energy market experts are raising alarms about this depletion, particularly as the Trump administration draws heavily on domestic reserves to counter the effective closure of the Strait of Hormuz amid ongoing tensions in Iran.
“This should be very concerning to every American consumer,” stated American Petroleum Institute President and CEO Mike Sommers during a CNN interview. “As those inventories decrease and production isn’t increased, you’re going to start seeing a significant impact at the pump.”
A contractor works on a crude oil pipeline at the U.S. Department of Energy’s Bryan Mound Strategic Petroleum Reserve in Freeport, Texas. (Getty Images)
“That’s going to happen over time,” Sommers cautioned, “but again, it’s because of American production that we haven’t seen those same price surges that you’ve seen in other parts of the world.”
“It’s a pretty monumental number to hear multi-decade lows reached,” remarked GasBuddy head of analysis Patrick De Haan in an interview with Fortune. “The longer this goes on, the fewer tools the administration has in dealing with it, and the more risk there is of a slingshot effect on costs.”
American Petroleum Institute CEO Mike Sommers joins ‘Mornings with Maria’ to warn that shrinking U.S. oil inventories and global supply disruptions could lead to higher gas prices for American consumers.
Under Biden-era leadership, the SPR has declined by 243 million barrels to address pandemic-era supply chain disruptions and the Russian invasion of Ukraine, according to a report by Fortune. In recent months, the Trump administration has authorized the release of 172 million barrels due to the ongoing conflict with Iran.
Energy prices rose by 3.9% in May amid disruptions to Middle Eastern oil supplies, with prices up 23.5% over the past year. The Bureau of Labor Statistics noted that the energy index accounted for over 60% of the overall consumer price index (CPI) increase in May. Gasoline prices surged by 7% on a monthly basis in May and are up 40.5% compared to a year ago.
“We’re raising alarm bells right now. We’re at about 350 million barrels left in the Strategic Petroleum Reserve. You need to have about 20% of that left for it to be operational, so we’re reaching levels that are concerning,” Sommers emphasized.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Fox News chief national security correspondent Jennifer Griffin reports on President Donald Trump stating that Iran shot down a U.S. Apache helicopter over the Strait of Hormuz on ‘Kudlow.’
“The only thing that we can do in the short term to fix this problem is to get the Strait [of Hormuz] open as quickly as possible,” Sommers concluded.
Under Secretary of Energy Kyle Haustveit told FOX Business’ Edward Lawrence on Wednesday: “We’re borrowing the barrels for a near-term supply challenge, but in return, those receiving the barrels are bringing more back. On average, we’re seeing over a 25% premium.”
FOX Business’ Eric Revell contributed to this report.
