Now Reading: US strategic oil reserves fall to 1983 levels during Iran war
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US strategic oil reserves fall to 1983 levels during Iran war
The US Strategic Petroleum Reserve has fallen below 300 million barrels for the first time since 1983, NDTV Profit reports. Washington has been drawing heavily on emergency oil stocks during the ongoing…
The Story in Brief
The US Strategic Petroleum Reserve has fallen below 300 million barrels for the first time since 1983, NDTV Profit reports. Washington has been drawing heavily on emergency oil stocks during the ongoing war with Iran. The reserve, created after the 1973 oil crisis, is meant to cushion supply disruptions. At current draw rates, the reserve could drop further if the conflict continues. The last time levels were this low, Ronald Reagan was president and oil was trading at around $30 a barrel.
The Indian Opinion
The panic around depleting US reserves feeds a lazy narrative that oil scarcity is imminent. In reality, the Strategic Petroleum Reserve is meant to be drawn during disruptions exactly like this war. The more concrete question is how quickly the US can replenish, and at what price per barrel. Watch for the next monthly US oil production data: that number will reveal whether domestic output can compensate.
Source: ndtvprofit.com
This story was synthesised by AI from the source linked above.
