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Thursday, September 29, 2022

US Strategic Petroleum Reserve fallen to lowest level since 1987

EconomyUS Strategic Petroleum Reserve fallen to lowest level since 1987

Huston (The Times Groupe)- US Department of Energy data showed that crude oil reserves in the US Strategic Petroleum Reserve (SPR) dropped by 5 million barrels in the week to May 13.

The Strategic Petroleum Reserve (SPR) stockpile fell to 538 million barrels, its lowest level since 1987.

According to the data, approximately 3.9 million barrels of sour crude were released into the market, while approximately 1.1 million barrels of sweet crude were released.

US President Joe Biden announced in March that he would release 1 million barrels per day (bpd) of crude oil for six months from the U.S. emergency oil reserve to try to bring down gasoline prices that have soared during Russia’s war with Ukraine.

Previously, the United States committed to release 30 million barrels of SPR oil in March and 50 million barrels in November.

Prices have risen nearly 25% to nearly $114 per barrel as markets worry about a supply shortage. Prices for gasoline and diesel reached record highs this week as fuel demand rebounds to pre-pandemic levels, while refining capacity has decreased.

In the preceding six months, Washington had tapped the SPR three times, releasing 180 million barrels, the equivalent of about two days of global demand.

The latest round of sales from the SPR included Valero Energy Corp (VLO.N), Motiva, Exxon Mobil (XOM.N), Shell (SHEL.L), Phillips (PSX.N) and Marathon Petroleum Corp (MPC.N).

According to US Customs data, ship tracking, and an industry source, at least three vessels carrying crude oil from U.S. emergency stockpiles sailed for Europe in April to replace Russian crude supplies.

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