The Strategic Petroleum Reserve was established in 1975 to protect the U.S. from oil supply disruptions. The current supply in the reserve is the lowest in over 40 years. Strategic Petroleum Reserve fell another 5 million barrels last week.
This is the 17th week in a row of a weekly drawdown, and it leaves total reserves at just 311 million barrels. That’s the lowest since March 1983. And continued escalation in the Persian Gulf and the direct or indirect impact of Russian-Ukraine attacks on each other leaves the reserve facing major issues well into 2027.
This is the bottom-line report. The rise in crude oil fuels inflation, something the Federal Reserve Board will be talking a lot about today and tomorrow. That’s our bottom line.
Audio Reporting by Mark Oppold for Southeast AgNet.