US emergency crude reserves near operating floor at 44-year low

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The US emergency crude stockpile is approaching a critical threshold.

As of Sept. 4, the Strategic Petroleum Reserve stood at its lowest level since 1982.

Here’s why it’s falling: The Trump administration authorized a release of 172 million barrels after the start of the Iran war. This represented the US share of a global release coordinated by the International Energy Agency.

Since then, the US has withdrawn about 130 million barrels, bringing the stockpile within the widely cited practical operating floor of 250 million to 300 million barrels. 

Why does that level matter?

Below that range, withdrawing oil quickly from these underground salt caverns becomes more difficult, and repeated operations can add stress to aging wells and infrastructure. 

The Government Accountability Office says the caverns remain generally sound, but well deformation is outpacing repairs, and withdrawal capability has fallen to about 61% of design capacity.

Oil from the SPR was released under exchange agreements. Oil traders and refiners promised to return the barrels with a premium from this fall through mid-2029. 

Until then, the US emergency oil reserve is shrinking and could potentially become harder to use when it matters most.