US Strategic Petroleum Reserve Hits Lowest Level Since 1983

The US Strategic Petroleum Reserve has been drained to a level not seen in over four decades, and the drawdowns are not over yet. Stocks of crude oil in the U.S. Strategic Petroleum Reserve fell by 5.5 million barrels to 325.7 million barrels, the lowest level since May 1983, according to data from the Department of Energy.

What is driving the drawdown

The drawdowns are part of a U.S. agreement to release 172 million barrels from the facility to plug a gap in global inventories after the Iran war and help push down fuel prices. That coordinated release was announced in March and is still working its way through the system.

At 325.7M barrels, the SPR is at its lowest since 1983 — and with the Trump administration's coordinated IEA release of 172M barrels announced in March 2026 currently underway, it will go lower still. That release alone is comparable in scale to the entire Biden drawdown.

Total US inventories are thin

It is not just the SPR. U.S. crude stocks have rapidly declined in recent weeks due to strong export and refining demand for American oil. Since the war began at the end of February, overall U.S. inventories, including commercial and SPR stocks, have fallen by 111.4 million barrels to 743.3 million barrels as of June 19. The combined inventory level marks the lowest since 1984.

Oil executives have already flagged the risk. “We're approaching unheard of inventory levels,” Exxon senior vice president Neil Chapman said May 28 at a conference hosted by Bernstein in New York. Chapman warned at the time that oil prices would spike as inventories fall while summer fuel demand is set to peak.

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Price action and the refill question

Crude oil prices are moving higher today, with WTI up $1.78 to $71.02 after trading as low as $69.32 earlier in the session. The price has climbed to within a few cents of the day's high at $71.09, signaling improved buying interest after last week's sharp decline.

The bigger question for traders is what happens next. Trump said the oil he released will be replaced with 200 million barrels over the next year. A refill of that size would mean sustained government bid in the physical market, which matters for crude balances into 2027.

Options market and stocks to watch

With inventories at multi-decade lows and a potential government refill on the horizon, energy names sit in the crosshairs. A few tickers to watch:

XOM: Exxon executives have been the loudest on tight inventories. Watch for flow tied to crude direction and any commentary on summer demand.

CVX: Another major leveraged to WTI swings and refining margins as US stocks tighten.

USO: The most direct retail proxy for WTI. Watch for positioning shifts if the Iran deal holds or unravels.

OXY: US-focused producer that benefits from sustained higher domestic crude pricing and any SPR refill bid.

XLE: The broad energy ETF for traders who want sector exposure rather than single-name risk.

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