By Arathy Somasekhar
HOUSTON, June 15 (Reuters) – Stocks of crude oil in the U.S. Strategic Petroleum Reserve fell to 340.3 million barrels, the lowest level since 1983, according to data from the Department of Energy on Monday, signaling tight supplies just as the U.S. and Iran agree on a deal to end the war and open the Strait of Hormuz.
Inventories in the government’s emergency stash fell by 8.9 million barrels, the third steepest draw on record. The drawdowns are a part of a U.S. agreement to loan 172 million barrels from the facility to help push down fuel prices, which surged in recent months to multi-year highs.
U.S. crude stocks have fallen sharply in recent weeks due to high refining and export demand for American oil to fill supply gaps caused by the Iran war. Overall U.S. inventories, including commercial and SPR stocks, have fallen by 79 million to 77.6 million barrels, the lowest since 2023, after the war began at the end of February.
Inventories at Cushing, the main storage hub for oil in Oklahoma and the pricing point for U.S. West Texas Intermediate crude futures, have eased to 21.6 million barrels, near operational lows, raising concerns of supply tightness.
Stocks in the SPR also dropped below the levels seen during the administration of former President Joe Biden, when it touched a low of 346.8 million barrels.
Republican lawmakers at the time raised concerns that the sale of 180 million barrels of oil — the largest ever from the Strategic Petroleum Reserve following Russia’s invasion of Ukraine — was being used as a “political tool” and had damaged the system’s delicate salt caverns. The Biden administration denied those claims.
Under the latest SPR loans, companies borrowing the oil are required to return the original volumes, with a premium in the form of extra oil. The department says that system will help stabilize markets at no cost to U.S. taxpayers.
(Reporting by Arathy Somasekhar in Houston, Timothy Gardner in Washington DC; Editing by Liz Hampton)
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