The United States Strategic Petroleum Reserve (SPR) lost nearly 800,000 barrels last week, falling to 283 million barrels, according to Department of Energy data released this Monday. The previous level had stood at 283.77 million barrels. Despite hovering near its lowest point since 1982, the Donald Trump administration is moving forward with plans to release an additional 40 million barrels to private refineries over the coming months.

The mechanism operates as a loan exchange: participating companies will receive allocated crude between November and December 2026 and must return it at a later date with a premium in additional barrels, which in previous contracts has reached up to 25%.

Oil Release Amid Global Crisis

The accelerated pace of crude withdrawals is driven by pressure from high domestic fuel prices less than a month before the U.S. midterm elections. Trump is attempting to soothe the agricultural sector by preparing diesel tax exemptions while asserting that inventories will eventually be replenished with Venezuelan oil.

However, experts warn that the reserve continues to drain, and the complex replenishment process has not yet begun. Furthermore, the current emergency stockpile covers barely two weeks of national consumption.

This sustained extraction comes amid the crisis in the Strait of Hormuz caused by the conflict with Iran and widespread concerns over global oil supplies. In light of this fragile global backdrop, Saudi Aramco CEO Amin Nasser warned that the global supply buffer stands at "dangerously" low levels.

Regarding this fragile international situation, Nasser pointed out that emergency reserve releases will only buy economies time without resolving the underlying imbalance between supply and demand. In parallel, G7 nations have announced new initiatives to release up to 100 million barrels of emergency fuel.

The United States has drawn heavily on its Strategic Petroleum Reserve in the context of its conflict with Iran and supply disruptions through the Strait of Hormuz.

The crude is stored in vast underground salt caverns located across Texas and Louisiana. Part of the newly announced injection of barrels will originate specifically from the Bryan Mound and Big Hill facilities along the Texas coast.