The United States is drawing down both its emergency oil reserves and commercial stockpiles as the war with Iran continues. In an effort to stabilize global energy markets, the United States is depleting its own reserves while Washington works to secure a lasting deal that would see the Strait of Hormuz reopened and Iran prevented from obtaining a nuclear weapon. New data released by the U.S. Energy Information Administration (EIA) showed another major decline in U.S. oil inventories, as Washington continues to release crude from the Strategic Petroleum Reserve (SPR) and to export to allies amid growing shortages.
Commercial crude inventories reportedly fell by 8 million barrels during the week ending May 29, while the SPR declined by an additional 8 million barrels to around 357 million barrels.
Generic Oil Tanker Image. Image Credit: Creative Commons.
The news raises new concerns about how long the United States can continue to act as an emergency oil supplier to largely Asian markets.
America’s Oil Inventories Keep Falling
The latest EIA figures showed commercial crude inventories dropping to 433.7 million barrels – roughly 3% below the five-year seasonal average. The data showed that inventories have fallen for six consecutive weeks.
And, the decline continues as exports increase – a trend that cannot continue in perpetuity. The Strategic Petroleum Reserve has also faced pressure in recent years, but that pressure has only increased in recent weeks. In March, the Department of Energy announced that 172 million barrels of oil would be made available as part of a coordinated effort with some of the world’s wealthiest countries. The announcement was made with the support and cooperation of the International Energy Agency as the Trump administration seeks to prevent a global oil crisis in the short term. The program will make approximately 400 million barrels of oil available in total to cushion the global economy.
While the news spells trouble, it demonstrates that the SPR is working as intended. The reserve was established following oil shocks in the 1970s and has an authorized total capacity of approximately 714 million barrels. Today, the reserve contains roughly half that amount.
Pressure During the Biden Administration
The SPR faced pressure during the Joe Biden administration, too. When President Biden took office in January 2021, the U.S. SPR held approximately 638 million barrels of crude oil, but during his time in office, the administration authorized the largest emergency drawdown in history, including a 180 million-barrel release announced in March 2022 following the Russian invasion of Ukraine.
Former Vice President of the United States Joe Biden speaking with attendees at the 2019 Iowa Federation of Labor Convention hosted by the AFL-CIO at the Prairie Meadows Hotel in Altoona, Iowa.
President Joe Biden receives an interagency briefing on the response to Hurricane Helene, Tuesday, October 1, 2024, in the Roosevelt Room of the White House. (Official White House Photo by Oliver Contreras)
Between a number of other congressionally mandated sales and smaller releases throughout his term, the SPR was roughly halved by the time Biden left office, with data indicating it contained 395 million barrels.
Why America Is Exporting So Much
The recent decline in U.S. inventories is being driven largely by exports. Before the conflict with Iran began, roughly 20 million barrels of oil and petroleum products moved through the Strait of Hormuz daily.
The waterway connected the Persian Gulf to global markets and served as a critical export route for several countries, including Saudi Arabia, Iraq, Kuwait, the United Arab Emirates, Qatar, and Iran.
According to the EIA, in the first quarter of 2026, 14.6 million barrels per day of oil passed through the strait, down almost 30% year over year. “EIA also broke down the 14.6 million barrels per day that transited the Strait of Hormuz into crude oil and petroleum products, with crude oil accounting for 10.7 million barrels per day (almost three-quarters) and petroleum liquids for 3.9 million barrels per day,” the Institute for Energy Research notes.
As Middle Eastern oil exports declined rapidly, buyers in Asia and Europe turned to American crude, with exports rising from the United States to approximately 5.6 million barrels per day in May – one of the highest levels on record. Imports also increased, but not enough to offset the overall drawdown in domestic U.S. inventories. It means that American producers are supplying a growing share of global demand that would normally be met by Persian Gulf exporters.
Emergency Reserves Only Buy Time
The U.S. is filling the gap, but the current situation cannot last forever. The Trump administration has repeatedly defended the decision to release oil from the SPR, arguing that the reserve exists specifically for moments just like this.
On May 11, the Department of Energy announced loans of 53.3 million barrels of oil to companies including Exxon Mobil and Trafigura – part of a larger emergency plan designed to stabilize markets without requiring direct subsidies from the taxpayer. The releases have helped prevent a dramatic spike in fuel prices, although those prices have certainly gone up regardless. U.S. gasoline prices remain above $4.50 per gallon – significantly higher than before the conflict.
USS Ronald Reagan (CVN 76), USS Kitty Hawk (CV 63), and USS Abraham Lincoln (CVN 72) cruise side-by-side in the Philippine Sea June 18, 2006, during exercise Valiant Shield 2006. The joint exercise consists of 28 naval vessels, more than 300 aircraft, and approximately 20,000 service members from the Navy, Army, Air Force, Marine Corps and Coast Guard. (U.S. Navy photo by Chief Photographer’s Mate Spike Call) (Released)
The challenge now for policymakers is that strategic reserves can only provide relief for so long, and every barrel released today is a barrel that will eventually need to be replaced – and potentially at an elevated cost.
About the Author: Jack Buckby
Jack Buckby is a British researcher and analyst specializing in defense and national security, based in New York. His work focuses on military capability, procurement, and strategic competition, producing and editing analysis for policy and defense audiences. He brings extensive editorial experience, with a career output spanning over 1,000 articles at 19FortyFive and National Security Journal, and has previously authored books and papers on extremism and deradicalization.
