US oil reserves nearing critical low

[Bad Bob]

As mentioned in the article, the SPR is nearing a critical low point which puts the nation at risk should a major oil shock hit the nation again. American Petroleum Institute chief Mike Sommers urges the reopening of the Strait of Hormuz ASAP in order to refill the reserves.

API oil chief warns US Strategic Petroleum Reserve nearing critical low | investingLive

The SPR buffer is shrinking fast, gasoline stocks have taken a summer-sized hit, and only Hormuz can fix it.

investinglive.com

An on-the-record warning from the API chief about SPR operational thresholds will sharpen trader focus on inventory data and the pace of reserve drawdowns. At 350 million barrels, the SPR is approaching the level at which roughly 70 million barrels remain as the functional floor, limiting the government's ability to intervene in another supply shock. The gasoline inventory draw of 38 million barrels is the most immediately price-sensitive detail, representing nearly a full summer driving season's worth of stock already gone. Rig count increases and rising Permian and Alaska output are the only near-term offsets, but Sommers is explicit that domestic supply response cannot substitute for reopening the strait.

-

API CEO Mike Sommers warns the US SPR is approaching operationally critical levels at 350 million barrels, with gasoline stocks already down 38 million barrels, urging rapid reopening of the Strait of Hormuz.

Summary: Source: Mike Sommers, CEO, American Petroleum Institute, speaking on CNN

• The SPR currently holds approximately 350 million barrels, with roughly 20% of total capacity required to remain for the system to stay operational, putting the functional floor around 70 million barrels
• Sommers says the API is raising alarm bells now, as reserve levels are entering a range of genuine concern
• Gasoline inventories have already drawn down by 38 million barrels, nearly equivalent to the entire stock typically consumed during the US summer driving season
• Rig counts have risen week on week and production increases are emerging in Alaska, the Permian Basin and other US regions, driven by higher prices
• Sommers says the only viable short-term solution to the supply problem is reopening the Strait of Hormuz as quickly as possible

 

[gipper]

Who is responsible for this?

 

[Gabe Lackmann]

Who is responsible for this?

 

[Mikeoxenormous]

As mentioned in the article, the SPR is nearing a critical low point which puts the nation at risk should a major oil shock hit the nation again. American Petroleum Institute chief Mike Sommers urges the reopening of the Strait of Hormuz ASAP in order to refill the reserves.

API oil chief warns US Strategic Petroleum Reserve nearing critical low | investingLive

The SPR buffer is shrinking fast, gasoline stocks have taken a summer-sized hit, and only Hormuz can fix it.

investinglive.com

An on-the-record warning from the API chief about SPR operational thresholds will sharpen trader focus on inventory data and the pace of reserve drawdowns. At 350 million barrels, the SPR is approaching the level at which roughly 70 million barrels remain as the functional floor, limiting the government's ability to intervene in another supply shock. The gasoline inventory draw of 38 million barrels is the most immediately price-sensitive detail, representing nearly a full summer driving season's worth of stock already gone. Rig count increases and rising Permian and Alaska output are the only near-term offsets, but Sommers is explicit that domestic supply response cannot substitute for reopening the strait.

-

API CEO Mike Sommers warns the US SPR is approaching operationally critical levels at 350 million barrels, with gasoline stocks already down 38 million barrels, urging rapid reopening of the Strait of Hormuz.

Summary: Source: Mike Sommers, CEO, American Petroleum Institute, speaking on CNN

• The SPR currently holds approximately 350 million barrels, with roughly 20% of total capacity required to remain for the system to stay operational, putting the functional floor around 70 million barrels
• Sommers says the API is raising alarm bells now, as reserve levels are entering a range of genuine concern
• Gasoline inventories have already drawn down by 38 million barrels, nearly equivalent to the entire stock typically consumed during the US summer driving season
• Rig counts have risen week on week and production increases are emerging in Alaska, the Permian Basin and other US regions, driven by higher prices
• Sommers says the only viable short-term solution to the supply problem is reopening the Strait of Hormuz as quickly as possible

https://www.politico.com/news/2023/10/16/biden-oil-reserve-fuels-00121298

Biden’s administration sold off more than 40 percent of the Strategic Petroleum Reserve last year to help limit rising fuel prices after Russia invaded Ukraine, leaving the stockpile at its lowest levels since the early 1980s. That’s fueling Republican accusations that Biden has left the U.S. vulnerable to a disruption of global oil supplies — at a time when Hamas’ terrorist attacks in Israel are stoking fears of a wider regional war disrupting fuel shipments from the Middle East.
“That’s Joe Biden’s fault for trying to lower the price of gas before the election,” House Natural Resources Chair Bruce Westerman (R-Ark.) told POLITICO. /quote]