U.S. Strategic Petroleum Reserve falls to its lowest level since the 1980s
The United States’ emergency oil stockpile is dropping to its smallest size since the Reagan era, raising concerns of market panic as the Strait of Hormuz remains blocked.
The nation’s Strategic Petroleum Reserve is nearing its lowest volume since 1983, a level not seen since the Reagan administration was still filling the stockpile. Since the war with Iran started, the Department of Energy reports a drawdown of 66 million barrels, and President Trump has authorized a cumulative release of 172 million barrels to curb domestic price spikes. GasBuddy’s petroleum analyst Patrick De Haan cautions that the closure of the Strait of Hormuz could trigger a market panic, pushing fuel costs higher in the coming months.
The dwindling reserve limits the administration’s ability to intervene, raising the risk of a sharp price surge. Meanwhile, broader market volatility continues, with global equity indices slipping and Brent crude trading around $91 a barrel.
How this story developed
- Aug 28 U.S. Negotiates Long-Term Lease of Venezuelan Oil Fields to Cut Import Costs
- Aug 28 The White House has referred inquiries about the proposed deal to the Energy Department.
- Aug 29 Trump announced a partnership granting the United States a 55% effective output share in Venezuelan oil fields.
- Aug 30 The first publicly shared photographs of Nicolas Maduro since his January abduction were uploaded to his X account. The pictures show the former president detained by U.S. officials as he prepares for a trial on narco-terrorism and drug-trafficking accusations. The post was framed as a tribute to his grandchildren and supporters.
- Aug 31 Acting President Delcy Rodríguez announced a 25‑year bilateral energy project granting the United States majority control of more than 65 billion barrels of Venezuelan reserves.
- Aug 31 Trump said the deal will allow the United States to top up its Strategic Petroleum Reserve.
- Aug 31 The partnership was described as a 25‑year joint venture targeting 1.5 million barrels per day and projected to generate about $209 billion for Venezuela, with the United States holding a 55 percent interest and a 35 percent passive stake in the private partner.
- Sep 1 Pentagon’s Office of Strategic Capital joins the Venezuelan oil venture.
- Sep 2 U.S. Energy Secretary Chris Wright scheduled a visit to Venezuela to discuss the oil partnership.
- Sep 2 The administration revealed a $100 billion proposal that includes a disputed 35 % Pentagon equity stake and a 100‑year lease for the private partner.
- Sep 2 Nicolás Maduro and his wife Cilia Flores asked a Manhattan judge to throw out a drug-trafficking indictment, arguing they are immune as Venezuela’s head of state and first lady.
- Sep 3 Oral arguments on the dismissal motion are set for Nov. 17.
- Sep 7 U.S. Secretary of State Marco Rubio is touring Colombia, Ecuador and Peru to meet newly elected leaders who share President Donald Trump's agenda.
- Sep 9 Rubio has begun the tour with a stop in Colombia, meeting President Abelardo de la Espriella.
Related stories
17 in this thread